ARTIFICIAL INTELLIGENCE–DRIVEN DIGITAL TRANSFORMATION IN SAUDI BANKING: A STRATEGIC FRAMEWORK FOR VISION 2030

Abstract

The banking sector in Saudi Arabia is on the verge of a transformative digital revolution, driven by the country's Vision 2030 initiative, which includes initiatives such as the Financial Sector Development Program, fintech growth, open banking, digital payments and data-based financial innovations. AI has emerged as a key driver of this change as it plays a pivotal role in various aspects of customer personalization, fraud prevention, credit risk assessment, operational automation, regulatory adherence, and financial inclusion. In this paper, a strategic model for the digital transformation in Saudi banks through the use of artificial intelligence is proposed. The study adopts a conceptual review approach, exploring the potential of embedding AI capabilities and Vision 2030 priorities within the context of governance, trust, cybersecurity, customer protection and regulatory alignment in the Saudi banks. The paper makes the point that achieving success with AI in the banking industry demands an operating model that is more than just technology; it needs to be coordinated and aligned across areas of data governance, responsible AI, customer-centric digital channels, workforce capability, regulatory requirements, ecosystem partnerships, and measurable value creation. The proposed framework offers a viable blueprint for collaboration between government, regulators, and technology and financial firms to integrate AI innovation into the national economic diversification, financial inclusion, and digital competitiveness agenda. This study adds value to the literature by addressing the Saudi Vision 2030 context and by offering a framework that can be applied in digital financial ecosystems.