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AI, Shariah Governance, and Maqasid Shariah in Islamic Finance

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  • Nor Faezah Ghazi Ahmad

    (Academy of Contemporary Islamic Studies, Universiti Teknologi MARA Cawangan Terengganu, Malaysia)

  • Nurul Izzah Noor Zainan

    (Academy of Contemporary Islamic Studies, Universiti Teknologi MARA Cawangan Terengganu, Malaysia)

Abstract

The Islamic banking sector is swiftly advancing due to the growing use of artificial intelligence (AI) in its governance and operational frameworks. While AI can improve the efficiency of Islamic banking, aid in risk management, assure regulatory compliance, and attract more clients, it must be meticulously linked with the fundamental aims of Islamic law, or Maqasid Shariah. This study employs a conceptual framework supported by case analyses from leading Islamic financial institutions. This paper examines the application of AI in Islamic finance, evaluates the role of Shariah governance in overseeing these technologies, and underscores the ethical, legal, and technological challenges that emerge from this intersection. The document offers regulators, Shariah boards, and practitioners techniques to ensure that technological innovations bolster Shariah compliance instead of compromising it. This study offers new insights to the literature and establishes a framework for ethical, sustainable, and innovation-driven Islamic banking by exploring the under-researched connection between AI and Shariah governance.

Suggested Citation

  • Nor Faezah Ghazi Ahmad & Nurul Izzah Noor Zainan, 2025. "AI, Shariah Governance, and Maqasid Shariah in Islamic Finance," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 9(9), pages 9972-9977, September.
    • Handle: RePEc:bcp:journl:v:9:y:2025:issue-9:p:9972-9977
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