ISSN: 2225-8329
Open access
The Arab insurance sector is undergoing a significant technological transformation driven by the adoption of Artificial Intelligence (AI). While AI offers substantial opportunities to improve operational efficiency, customer experience, and risk management, it also raises critical cybersecurity, ethical, and regulatory challenges. This study examines the adoption of AI in the Arab insurance industry through the Technology–Organization–Environment (TOE) framework, with particular emphasis on organizational factors and customer-centered initiatives that shape the overall customer experience.The study highlights the increasingly important role of insurance companies in enhancing digital resilience in an era of growing cyber threats. Insurers have introduced innovative products and services, such as cyber insurance and cyber risk management solutions, to help organizations mitigate the risks associated with digital transformation. The findings emphasize the interdependent relationship between insurance companies and businesses in strengthening cybersecurity and addressing evolving cyber risks.At the same time, the integration of AI creates complex legal and ethical challenges, particularly within the Arab context. Insurance companies face difficulties in ensuring regulatory compliance, protecting data privacy, and maintaining ethical standards while adopting rapidly evolving AI technologies. The research reveals that organizations are developing strategic responses to balance technological innovation with legal and ethical obligations.The study contributes to existing literature by providing a comprehensive analysis of ethical and compliance issues related to AI adoption in the Arab insurance sector. Through case studies and practical examples, it demonstrates how organizations address these challenges by establishing dedicated compliance teams, developing robust corporate policies, and collaborating with regulatory authorities to ensure the responsible use of AI.Furthermore, the study underscores the importance of Explainable Artificial Intelligence (XAI) in increasing transparency, accountability, and trust in AI-driven decision-making processes.To support responsible and effective AI implementation, the study recommends several strategic initiatives, including the development of comprehensive ethical AI guidelines, strengthening compliance mechanisms, investing in XAI technologies, conducting regular audits of AI systems, promoting responsible data governance.
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