Campbell Steven 
Saudi Arabia is quickly becoming a leader in using artificial intelligence (AI) and machine learning (ML) in its financial world. These tools help banks, investment companies, and holding companies work better and serve people more safely. This change ties directly to Vision 2030, the country’s plan to build a strong digital economy away from oil.
AI and ML spot patterns in huge amounts of data fast. In finance, they fight fraud, check risks, and give personal advice to customers. Many investment strategies Saudi Arabia now use these tools to manage money smarter and grow faster.
How AI and ML Are Changing Banking and Finance
Banks in Saudi Arabia use AI every day. Chatbots powered by AI answer customer questions quickly. Machine learning looks at past spending to offer the right loans or savings plans.
Fraud is a big problem in finance. AI watches transactions in real time and flags strange ones. This saves money and keeps trust high. The Saudi Arabian Monetary Authority (SAMA) supports these tools to make banking safer.
Holding companies also benefit. They own many businesses and need to track risks across them. ML predicts market changes and helps decide where to invest next.
Key Uses of AI in the Financial Sector
Fighting Fraud and Managing Risks
AI is great at catching bad activity. It learns from past fraud and stops it before it happens. Many banks cut fraud losses a lot with these systems.
Risk management is another big win. ML models check credit scores better than old ways. They look at more data, like phone use or shopping habits, to say yes to more good loans.
Investment companies use AI for trading. It spots trends fast and buys or sells at the best time.
Better Customer Service and Personal Plans
Customers want fast, personal help. AI gives that. It suggests products based on what you like. For example, if you save often, it might offer a better account.
In Islamic finance, which is big in Saudi Arabia, AI makes sure products follow Sharia rules while being modern.
Helping Investment and Holding Companies Grow
Investment companies and holding companies handle large portfolios. AI helps them pick winners. It analyzes news, markets, and company reports to guide choices.
One example is using ML for portfolio balance. It shifts money to lower risks and raise returns. Holding companies use this to oversee many assets at once.
Vision 2030 and Government Support
Saudi Arabia’s Vision 2030 pushes for AI in all sectors. The Saudi Data and Artificial Intelligence Authority (SDAIA) leads this. They aim to make the country a top AI player by 2030.
SAMA runs a “sandbox” where companies test new AI ideas safely. Fintech startups grow fast with this help. Over 200 fintech firms now work in the Kingdom, many using AI.
The government invests billions in AI training and tools. This creates jobs and brings in experts.
Real Examples from Saudi Companies
Big banks like Al Rajhi and National Commercial Bank use AI for customer apps and fraud checks. Companies like Mozn build AI tools just for Arabic language and local needs.
Investment firms, such as those under large holding companies, use ML to predict oil price effects or global shifts. This keeps money safe and growing.
Challenges and How to Overcome Them
AI brings great things, but also challenges. Data privacy is key. Saudi laws protect personal info, and companies must follow them.
Skill gaps exist. Not enough people know AI yet. Training programs and schools are fixing this.
Ethical use matters too. AI should be fair and not bias against anyone.
To succeed, investment companies and holding companies should start small. Test AI in one area, like risk checks, then grow.
The Future: What Comes Next
By 2030, AI could add over $135 billion to Saudi Arabia’s economy. The financial sector will lead this growth.
More holding companies will use AI for smart decisions across businesses. Investment companies will offer AI-based advice to everyday people.
Fintech will boom, making finance open to more Saudis. Digital wallets and quick loans will be common.
For investment companies looking ahead, now is the time to adopt AI. Partner with tech firms or build teams. This will help them stay strong in a changing world.
Action Steps for Businesses
If you run an investment or holding company in Riyadh, here are simple steps:
- Check your data. Good AI needs clean info.
- Pick one problem, like fraud or customer help, to fix with AI first.
- Train your team or hire experts.
- Work with SAMA rules for safe testing.
- Watch results and grow from there.
These steps make your company ready for the AI future.
In short, AI and machine learning are not just trends in Saudi Arabia’s financial sector. They are tools building a stronger, smarter economy. Investment companies and holding companies that use them now will lead tomorrow.
