Artificial intelligence (AI) is significantly transforming Oman’s banking sector, particularly in fraud detection, anti-money laundering (AML) compliance, and operational efficiency. Dr. Jihad bin Rashid al Wahshi, Head of Data Management at the Central Bank of Oman (CBO), discussed the rapid changes at the Oman AI Summit 2025, highlighting both the opportunities and challenges posed by AI adoption in financial institutions.
AI-powered systems have revolutionized fraud detection, enabling real-time identification of anomalies through machine learning, which improves on traditional systems that often struggle with high volumes of false positives. Dr. Al Wahshi emphasized the need for high-quality data, continuous model training, and regulatory alignment to stay ahead of increasingly sophisticated fraud techniques, including adversarial AI.
Similarly, AI is proving transformative in AML compliance. Traditional rule-based systems often generate false positives, creating inefficiencies, whereas AI-driven solutions allow for dynamic monitoring and intelligent risk scoring. These systems assess transactional data in real time, identifying patterns that suggest potential money laundering activities. However, the success of AI in AML relies heavily on strong data governance, including data integrity and security.
Looking ahead, the integration of emerging technologies like AI, blockchain, and cloud computing is essential for a secure and efficient financial ecosystem. Dr. Al Wahshi called for collaboration between regulatory bodies, financial institutions, and technology providers to create regulatory frameworks that encourage innovation while ensuring robust security standards.
Challenges remain, particularly in data quality, legacy IT systems, and regulatory uncertainty. To fully leverage AI, Oman’s banking sector must adopt a phased digital transformation strategy, enhance data governance, and engage proactively with regulators. Ethical AI governance is also crucial, requiring financial institutions to establish internal ethics committees to ensure compliance with standards.
Dr. Al Wahshi also highlighted the importance of public-private collaboration to foster AI adoption, suggesting initiatives like regulatory sandboxes where banks can test AI solutions in controlled environments. As Oman progresses towards Vision 2040, AI will be a key driver in shaping the future of banking, but its success will depend on balancing innovation with responsible data governance and ethical practices.
