Islamic Finance and Artificial Intelligence

As Islamic finance evolves in the digital era, artificial intelligence (AI) stands out as both a disruptor and an enabler. Islamic Finance and Artificial Intelligence: Ethics, Compliance, and Digital Innovation provides a pioneering examination of how AI technologies can be integrated into Islamic financial systems while maintaining adherence to Shari’ah principles and ethical governance.

The book explores AI-driven tools and their implications for Shari’ah-compliant operations. It critically examines issues of algorithmic transparency, accountability, and the governance of digital financial services within Islamic ethical frameworks. By combining rigorous conceptual analysis with contemporary industry developments, the book demonstrates how digital innovation can enhance efficiency, financial inclusion, and responsible financial practices in Muslim-majority and emerging markets. Presenting a technical deep dive into AI development, the book showcases methodologies, tools, and innovative applications tailored to Islamic financial products and services, with a discussion on blockchain, smart contracts, and other technologies designed to uphold Shari’ah compliance. Further, it provides a comprehensive risk analysis of AI adoption in Islamic finance that relates to ethical challenges, operational risks and systemic threats.

The book bridges academia, industry, and policy, offering practical insights and forward-looking strategies for leveraging AI to build a more inclusive, ethical, and innovative future. Situating Islamic finance within the broader digital transformation of the global financial sector, it is essential reading for academics, policymakers, fintech professionals, regulators, and students engaged with financial technology, Islamic economics, and the ethics of algorithmic governance.

Mohd Ma’Sum Billah is a Senior Professor of finance at the Islamic Economics Institute, King Abdul Aziz University (KAU), Kingdom of Saudi Arabia.

Razali Haron is a Professor of Finance at the IIUM Institute of Islamic Banking and Finance, International Islamic University Malaysia (IIUM).

Nazrul Hazizi Noordin is an Assistant Professor of Finance at the IIUM Institute of Islamic Banking and Finance, International Islamic University Malaysia (IIUM) and a Visiting Fellow at the Oxford Centre for Islamic Studies, United Kingdom.

Fahd Al-Shaghdari is an Assistant Professor of Finance at the IIUM Institute of Islamic Banking and Finance, International Islamic University Malaysia (IIUM).

Ahmad Mu’azz Billah is a Cybersecurity, Cloud & AI Engineer at ANTAREX Cyber, Kuala Lumpur, Malaysia.