AI is more than a mere gadget; it has penetrated the decision-making process in various domains such as medicine, banking, employment, and even in criminal cases. Globally, AI systems are being used in making decisions without human intervention that have lasting effects on humans. It makes us question where the legal liability and accountability. Whenever AI learns, adapts, and acts without direct human control, intent, predictability, and accountability become blurred.
A UAE Financial Services Firm was a victim of an online deepfake scam. The scammers used an AI- generated video during an online meeting to impersonate the company’s CFO. The employees believed the scam was real and authorised a large transfer of funds, which led to huge losses in millions of dollars.
The matter was investigated under the PDPL of the UAE, and the company was found to be liable for the case. This is an example of the new threat from deepfakes that have the potential to damage organizations and exploit human weaknesses.
The year 2022 witnessed one of the biggest attacks against one of the leading telecommunication organisations in the UAE through AI-based attacks. Customers’ personal data and internal infrastructure were leaked. The telecom provider was held liable and had to compensate the victims. An investigation was conducted by the Personal Data Protection Law(PDPL). This reveals how AI-powered cyberattacks are increasing in the region. This was due to an error made by the algorithm independently, without any malice involved; yet, the responsibility is that of the company.
The Dubai property website had been accused of scamming people in 2023. Here, some scammers set up fictional accounts and used AI to create fictitious property sites and convinced innocent investors to buy non-existent properties. They tricked investors into transferring large sums of money by portraying legit brokers. Though AI technology was used as the medium of the scammers, the court still held the platform accountable for not verifying AI-generated content.
AI takes independent decisions with actual repercussions in life, and the liability will always be on the part of humans and companies. Unlike other countries of the world, the UAE also does not recognize AI as a legal person. However, by treating artificial intelligence as a legal person, some problems, such as that of the liability gap, could be tackled. Nevertheless, this could create more challenges, such as obscuring the idea of the law.
These are the most complicated problems that trouble the lawmakers. Everyone is worried about with whom the liability actually lies; the UAE legal system has prepared a custodian liability approach combined with proactive regulation. Yet AI is becoming increasingly autonomous, and pressure lies with the law to evolve, too.
The UAE launched their Artificial Intelligence Strategy back in early 2017, which helped in shaping the government plans and the rules that came after. It has helped to put together a complete legal structure to deal with AI systems.
Moreover, a new strategic approach was created concerning artificial intelligence in the UAE in 2023. The name of the strategy is UAE Artificial Intelligence Strategy 2031. The idea seems to be pushing the country forward as a leader in this area. They want to get AI working in lots of different parts of the economy and daily life.
It feels like the focus stays on making things more connected through technology. However, there are some aspects that attract more attention than others. The first reason why the plan was developed is to be a frontrunner worldwide, although its success may not be felt immediately. However, it is very hard to predict all consequences due to the involvement of many sectors in it.
The Data Protection Law issued by the Dubai International Financial Centre (DIFC) in 2020 was revised in September 2023. There is also the Federal Decree Law 45 of 2021 on Personal Data Protection.
Together, they seem to have a main role in regulating AI. The goal appears to be supporting the growth of AI. At the same time, basic rights need protection along with national security. Though it seems as though such an arrangement will promote expansion, I am uncertain about its efficiency.
On another note, the creation of the Artificial Intelligence and Advanced Technology Council (AIATC) by the UAE Cabinet emphasises regulatory issues.
AIATA is one of the government institutions established in 2024. It acts as a significant part in merging and managing national activities related to artificial intelligence in all industries, developing ethics policies, and setting up international frameworks, in addition to concentrating on establishing the UAE as an attractive destination for AI investments and collaborations.
Fundamental Provisions and Principles of UAE AI Regulations:
The UAE’s AI Laws are informed by international standards, also prioritising unique regional references. The country has embraced an “AI Principles and Ethics” framework. It summarises eight core principles that are conceived to preserve ethical standards in AI development and deployment. The regulatory framework has put a focus on the following, particularly:
UAE AI Act 2026 represents the world’s first-ever all-encompassing national law for AI. It came into effect from March this year. It introduces a hierarchical regulatory regime concentrating on everything from consumer chatbots to self-driving cars and provisions concerning smart cities in Dubai powered by AI.
The UAE AI Act makes use of risk categorization as its central component in determining compliance obligations. In many ways, this bears similarities to the EU AI Act but also incorporates features that have been documented to meet UAE objectives, such as smart city architecture, financial institutions, and healthcare applications. Additionally, the UAE AI Act has strict penalties for non-compliance.
The regulation of AI in the UAE is continuously monitored as the government is in a constant process to establish the necessary legal structure regarding AI. Several laws impact the regulation of AI in the UAE; these include data protection laws, consumer protection laws, cybersecurity laws, and some specific sector laws. Together, they contribute to an environment that encourages creativity without losing the element of accountability. The United Arab Emirates (UAE) is always working on enhancing its AI laws to become the world’s capital for Artificial Intelligence.
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