AI Governance and Ethics in Saudi Arabia: Building a Responsible Innovation Ecosystem

Muhammad Rizwan^1*, Ayyaz Mehmood Khan², and Shahzeb Muhammad³

Abstract

Adopting a secondary qualitative research design, this study investigates how Saudi Arabia can develop sound regulatory measures and ethical standards to ensure responsible, inclusive, and sustainable adoption of artificial intelligence (AI) in the banking industry in line with Vision 2030. The thematic analysis of secondary literature published between 2019 and 2024, including academic articles, policy papers, and institutional reports, reveals that Saudi Arabia has established AI governance frameworks through entities such as SDAIA, SAMA, and the National Cybersecurity Authority, aligned with international principles of transparency, responsibility, and equity. However, the sector faces challenges related to enforcement, interpretability, risk classification, multi-stakeholder engagement, regulatory fragmentation, cultural perceptions of privacy and trust, data quality limitations, cybersecurity threats, and internal skills gaps. Despite these challenges, state-led initiatives, fintech partnerships, responsible investment approaches, and innovation-oriented organizational cultures have emerged as key enablers of ethical AI utilization. Future research should incorporate interviews with regulators, banking executives, and AI developers to gain deeper real-world insights.

Keywords

Artificial Intelligence Governance, Ethical AI, Saudi Banking Sector, Vision 2030

Corresponding Author

Muhammad Rizwan, Digital Transformation, AI Initiatives & Data Analysis Leader, Saudi Arabia.

Citation

Rizwan, M., Khan, A. M., & Muhammad, S. (2025). AI Governance and Ethics in Saudi Arabia: Building a Responsible Innovation Ecosystem. Cognitive Computing & Extended Realities, 1(1), 01–21.