A.I in the Banking Sector: A Critical Review of Research and Developments in the Middle East

Abstract

Artificial intelligence (AI) represents a transformative force in various sectors, including banking, healthcare, and scientific research. Initially conceptualized in 1956 by John McCarthy, AI has evolved from rule-based systems to advanced machine learning models. Machine learning, particularly deep learning, has been instrumental in enhancing AI's capabilities, enabling systems to learn from data and make predictions without explicit programming. AI's impact on society is profound, offering benefits such as increased efficiency, productivity, and innovation across domains. However, it also poses ethical considerations, including biases in AI systems and implications for employment. In scientific research, AI accelerates discoveries by analyzing large datasets and generating hypotheses. Despite its potential, challenges like data privacy and interpretability persist, requiring ongoing research and dialogue. In banking, AI enhances fraud detection, risk management, and customer service, leading to improved operational efficiency and customer satisfaction. The Middle East, particularly GCC countries, has shown significant interest in AI, driven by its potential economic impact. AI adoption in the banking sector of Bahrain is still emerging but holds promise for enhancing operational efficiency, customer experience, and risk management, contributing to a competitive banking landscape. As AI continues to evolve, addressing ethical and practical concerns is paramount to ensure its responsible use and maximize its benefits for society.