Artificial Intelligence in Islamic Finance
Year: 2025
Type: book-chapter
Abstract: The integration of artificial intelligence (AI) in Islamic finance offers great opportunities to improve risk management, operational efficiency, auditing, and compliance with sharia principles. This chapter explores how AI can identify risks in real-time, speed up the sharia audit process, and ensure compliance with principles such as the prohibition of usury, gharar, and maysir. In addition, AI supports the development of innovative financial products that are in line with Islamic values. The adoption of artificial intelligence (AI) in Islamic finance has major implications for financial institutions, regulators, fintech, academics, and society. For Islamic financial institutions, AI improves operational efficiency, accelerates the sharia audit process, and supports product innovation in accordance with Islamic principles. Regulators need to develop a regulatory framework that governs the use of AI to remain sharia-compliant, ensure transparency and reduce the risk of algorithmic bias.
Author: Early Ridho Kismawadi
Institution: Institut Agama Islam Negeri Langsa
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: hybrid
OpenAlex ID: W4410860323