Where AI is actually moving the needle in banking

Artificial Intelligence is already generating billions in value across global banking. Yet in the Middle East and Africa, adoption remains limited and uneven. With so much momentum in the space, the real question for many banks is: what does meaningful AI impact actually look like, and how do we get there?

Over the past decade, AI has been marketed as the solution to everything from customer onboarding to fraud detection. And while it has certainly delivered improvements, the results have often felt incremental or disconnected from wider transformation goals.

The conversation now needs to shift from hype to actual outcomes. And that’s where the latest wave of AI, what we call Agentic AI, comes in.

A recent joint report by Backbase and IBS Intelligence offers a data-led view of where MEA banks stand today. One figure stands out:

That’s a telling number, especially considering the projected global value of AI in banking is expected to reach $350 billion. What’s more, AI-enabled banks are already seeing productivity gains of up to 2% annually, compounding across journeys and operations.

The gap between potential and reality is clear. But there are also early signs of progress.

Several banks in the region are already turning AI into something tangible.

• Stanbic Bank Zambia launched Stan, a 24/7 AI-powered assistant available on WhatsApp and Telegram. Customers can check balances, apply for loans, and resolve queries without visiting a branch. It’s a clear example of contextual, always-on engagement that meets customers where they already are. 

• Emirates NBD is piloting generative AI tools such as Microsoft 365 Copilot and GitHub Copilot X internally, helping employees draft documents, automate processes, and accelerate decision-making. It underscores the shift towards smarter, AI-augmented operations rather than just customer-facing automation. 

• Qatar Islamic Bank (QIB) introduced Zaki, a bilingual AI assistant supporting Arabic and English. Zaki handles account inquiries, fund transfers, and product information across web, app, and WhatsApp channels, with voice capabilities currently in development. This approach reflects a focus on intelligent servicing that honors local language and cultural nuances. 

• Saudi National Bank (SNB) has deployed an AI assistant capable of handling everyday banking interactions in multiple languages, including Arabic, English, and Urdu. The assistant resolves routine inquiries, processes card requests, and supports basic transactions, easing call-center workloads and enhancing accessibility for a multilingual customer base.

These live deployments demonstrate how targeted AI solutions deliver tangible benefits: improved customer engagement, enhanced convenience, and streamlined operations.

Until recently, most AI in banking focused on responding to inputs. A customer makes a request, and the system delivers a pre-programmed action or reply.

Agentic AI changes this model. Instead of waiting for prompts, it observes, learns, and acts based on goals. It can predict needs, recommend products in real time, and make micro-decisions that improve the overall experience.

This matters especially in MEA, where many banks serve a mix of first-time digital users and increasingly sophisticated mobile-first customers. Intelligent automation needs to be both scalable and deeply human in how it interacts.

We’ve built our AI capabilities to support this evolution. From predictive onboarding flows to intelligent service routing, the shift toward Agentic AI is helping banks move beyond fragmented experiences into orchestrated, outcome-driven journeys.

The fundamentals in MEA are strong. Mobile penetration is high. Youth demographics are digitally native. And governments across the region are pushing bold AI and digital finance agendas. But real challenges remain: legacy systems often limit scalability. Regulatory frameworks are still catching up with AI innovation. And there is a continued shortage of AI talent across key markets.

This is why strategy matters. In our report, we introduce the RACE framework, a practical guide to help banks move from experimentation to scaled implementation:

As banking becomes increasingly digital, the role of AI will only deepen. But the value won’t come from isolated tools or one-off use cases. It will come from integrated intelligence that drives real results across the customer lifecycle.

The banks that create meaningful AI impact will be those that embed intelligence into their operations, culture, and customer journeys, not just their technology stack. For a closer look at the data, examples, and strategic guidance, download the full report below.