Agentic AI, autonomous, goal-oriented systems capable of multi-step reasoning and independent action, are rapidly transforming banking operations. These AI agents can process internal data, make decisions, and perform tasks with minimal oversight. While this unlocks significant efficiencies, it also introduces new cybersecurity challenges that the financial sector must address urgently.
What Is Agentic AI and Why Banks Are Adopting It
Agentic AI differs from conventional AI in that it does not simply respond to single prompts. Instead, it operates with memory, context, and initiative. In banking, agentic systems are being deployed to:
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Streamline compliance workflows and reporting
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Automate loan origination and credit assessment
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Respond to legal service queries and audit trails
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Monitor transactions for fraud in real time
HSBC, for example, has used AI to cut false positives in fraud detection by 20%, leading to savings of approximately $30 million annually.
Cybersecurity Risks of Agentic AI in Banking
As banks deploy AI agents deeper into core systems, they expose themselves to new categories of digital risk:
Expanded Attack Surface
Agents require access to multiple systems (e.g., customer records, transaction histories, APIs), increasing exposure to cyber threats if those agents are compromised or misused.
Adversarial Manipulation
Malicious actors can exploit prompt inputs or training data to alter agent behavior, potentially tricking the system into approving fraudulent activities or disclosing confidential information.
Autonomous Data Leaks
Agents may unintentionally expose sensitive data by forwarding documents, misclassifying content, or interacting with unauthorized recipients.
Workflow Overreach
Without proper guardrails, agents tasked with “improving efficiency” could bypass security protocols, creating compliance and ethical risks.
AI and Cyber Risk in the GCC Banking Sector
Banks in the GCC are among the global frontrunners in AI adoption, with a strong focus on customer experience and operational efficiency. According to PwC Middle East, 56% of GCC banks have implemented AI in at least one functional area.
However, cyberattacks on financial institutions in the MENA region increased by 79% between 2022 and 2023, according to IBM’s 2023 Data Breach Report.
As Naim Yazbeck, General Manager, Microsoft UAE, stated at GISEC Global 2025:
“As Generative AI reshapes industries, it also presents new challenges in cybersecurity. Cybercriminals are leveraging these advancements to develop more sophisticated methods, making it crucial for us to stay ahead with innovative solutions.”
The Five Cybersecurity Pillars for Agentic AI in Banking
To operate agentic systems securely, banks must anchor their deployment on five cybersecurity pillars:
1. Zero Trust Access
Agents should operate under the principle of least privilege, with strict identity and access management.
2. Prompt and Output Filtering
All inputs and outputs must be screened for intent, risk, and compliance, especially in sensitive workflows.
3. Audit Trails and Explainability
Logs should capture every decision and action by an agent to support regulatory review and accountability.
4. Manual Overrides and Kill Switches
Agents must be interruptible in real time, allowing human overrides or emergency shutdowns.
5. Adversarial Testing
Simulate malicious inputs and goal conflicts to evaluate how agents behave under attack or ambiguity.
The Way Forward
As agentic AI continues to reshape financial services, cybersecurity must evolve in parallel. Regulatory bodies, CISOs, and technology teams must collaborate to design systems that are secure by architecture, not just policy. The adoption of agentic AI should be accompanied by governance frameworks, real-time oversight, and ethical alignment, especially in regulated sectors like banking.
Organizations that succeed will be those that not only embrace AI-driven innovation but do so with the discipline to secure, monitor, and course-correct when necessary. Agentic AI is not just a technical leap—it is a test of digital maturity.
Summary: Key Questions Answered
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What is Agentic AI?AI that can autonomously plan and execute tasks across systems without continuous human input.
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Why is it relevant to banks?It improves efficiency in areas like fraud detection, compliance, and customer service.
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What are the biggest risks?Data exposure, adversarial manipulation, unchecked decision-making, and system overreach.
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How can banks mitigate these risks?Through zero trust access, output validation, logging, manual overrides, and adversarial testing.
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Are GCC banks prepared?While adoption is high, the region still faces significant cybersecurity gaps that need urgent attention.
