Integrating artificial intelligence in Islamic financial management: Opportunities and challenges in maintaining Shariah compliance
subject: Artificial Intelligence; Big data; Financial management; IF; Natural language processing; Technology integration
description: The objective of this study is to examine the potential incorporation of Artificial Intelligence (AI) technology into financial management practices that are based on Islamic principles, with a particular emphasis on ensuring Shariah compliance. The literature analysis methodological approach is employed to identify the opportunities and challenges associated with the adoption of AI in the Islamic Finance (IF) environment. The results indicate that the implementation of AI can enhance the efficacy, transparency, and precision of IF operations. However, there are numerous challenges associated with Shariah compliance and ethics. The findings of this study emphasize the importance of establishing a regulatory framework that is consistent with Shariah principles in order to ensure the successful implementation of AI in Islamic financial institutions (IFI). The need for collaboration between finance experts and academics to ensure that the technology is implemented in accordance with Shariah principles, as well as the expansion of training for IF (Islamic Finance) practitioners regarding the implications of AI, are among the recommendations. Future research should examine the influence of more specific AI implementation strategies on Islamic conformance and operational efficacy in the context of IF. 2025 Early Ridho Kismawadi, Mohammad Irfan and Isnaini Harahap. All rights reserved.
creator: Kismawadi, Early Ridho; Irfan, Mohammad; Harahap, Isnaini
source: Indigenous Empowerment through Human-Machine Interactions: The Challenges and Strategies from Business Lenses;pp.273-288
publisher: Emerald Publishing
date: 01-01-2025
rights: Restricted Access; Hardcopy may be available in the library
relation: ISBN: 978-183608068-8; 978-183608069-5;
language: English
type: Book chapter
coverage: Kismawadi E.R., IAIN Langsa, Indonesia; Irfan M., Christ University, India; Harahap I., Universitas Islam Negeri Sumatera Utara, Indonesia