AI has become one of the most influential factors in evaluating credit risk and detecting frauds in credit portfolios. Nevertheless, there is still an urgent need to consider ethical aspects related to incorporating AI into loan decision-making processes especially concerning the Saudi financial sector amid its ongoing transition according to the Vision 2030. In this review paper, I explore how an AI risk management governance system and a credit decision framework can lead to enhanced credit decision making, responsible financial inclusion and institutional stability. Rather than limiting myself to analyzing algorithmic precision, I perform an extensive narrative review covering different phases of credit decision-making process: from the sourcing and preparation of relevant data to model construction, explanations, manual supervision, fairness assessment, regulatory compliance, portfolio monitoring and auditing assurance. For that purpose, I employ a systematic narrative review methodology and utilize academic articles and other materials published within the time period from 2020 to 2025. As a result of reviewing relevant literature, I found that AI could improve credit decisions through detecting non-linear risk relationships, refining early warning signals, conducting automated document analysis and segmenting borrowers in greater detail. Yet such improvements would be possible only in case companies ensure proper data handling, model management, mitigation of biases, cyber risks, outsourcing issues and Shariah compliance. Therefore, I propose an AI Credit Governance Framework consisting of five layers.