“Artificial Intelligence (AI) Disclosure and Financial Performance: An Empirical Study of Egyptian Banks”

The present paper aims to discuss the degree to which analyzed Egyptian banks integrate AI techniques into their functioning and assess the relationship between AI disclosure and business outcomes. Based on content analysis by Atlas. ti 23, AI-related terms were identified in annual report data of the period 2017 – 2023 from 17 Egyptian banks listed in the Central Bank of Egypt (CBE). In using regression analysis, the results showed that AI disclosure has been slowly improving while some banks still have low disclosures revealing that extraordinary AI application is still in its nascent stages. The research evidence demonstrates that AI disclosure improves firm accounting performance in terms of ROA and ROE and decreases total operational costs. These outcomes are consistent with findings within the international literature indicating that AI facilitates optimisation and optimisation of financial performances achieved by reducing costs and increasing revenues. This research enriches the literature on the use of AI in banking especially in the Middle East by presenting a framework for measuring AI disclosure and discussing its relationship with organizational performance. The work is useful for Egyptian authorities, financial supervisors and other banking personnel to gain more insights regarding the current state of AI disclosures and how they should enhance the quality of such disclosures to help improve the operations, decision making and organisational strategic direction of financial firms in Egypt.