IDEAS home Printed from https://ideas.repec.org/p/zbw/esprep/341085.html

AI Adoption in Islamic Finance using Extended TAM Model with Moderation of Shariah Compliance Perception, Perceived Risk, Perceived Trust

Author

Listed:
  • Khan, Hamza M Abdul Mateen
  • Siddiqui, Danish Ahmed

Abstract

The unceasing rate of technical advancement that defines the digital era has made a major impact on the direction of the financial industry. One of the fastest-evolving technologies in the world is artificial intelligence. This study examined the relationship between TAM constructs and through an extension of the Technology Acceptance Model (TAM) with perceived risk, perceived trust, and perception of Shariah compliance as moderators, examined the adoption of artificial intelligence (AI) in Islamic banking. We proposed users' Perceived ease of use (PEOU), Awareness towards AI (AWS), and subjective norms (SN) affect perceived usefulness (PU), which in turn affect attitude towards AI (ATT). A positive attitude leads toward behavior intentions (BI) and ultimately continued intention (CI). We also contend that perceived risk of AI (PR), perceived trust in AI (PT), and perception of Shariah compliance (SCP) moderate the effect of PEOU, AWS, SN and PU on ATT, the effect of ATT on BI, and the effect of BI on CI respectively, in a way that higher level of PR, PT, and SCP will make these relationships stronger. This study is carried out as a quantitative, explanatory research technique, statistical data was collected from banking service users through a standardized questionnaire using an online platform in a cross-sectional temporal horizon. The literature is supported by online publications. A total of 350 respondents made up the study's sample size. SmartPLS was used for statistical analysis. The study's empirical findings clarify that all 9 direct hypotheses; perceived ease of use, awareness of AI, subjective norm, and perceived usefulness; all positively impact attitudes, behaviors, and continuance intentions to use AI in the banking industry. The analysis also revealed that all of the 18 moderators' hypotheses from the extension of constructs from the TAM framework, including perceived risk, perceived trust, and Shariah compliance perception, were disproved suggesting that users do not give religious judgment, risk perception, or degree of trust much thought while deciding whether to keep utilizing AI technology in the Islamic banking sector. The conclusions point to the importance of raising acceptability and adoption in Islamic banking by utilizing social influence, raising awareness, and easy-to-use AI solutions. The report provides valuable recommendations to policymakers and practitioners who wish to implement AI technology in a customer-oriented manner, alongside contributing to the growing literature on AI in banking.

Suggested Citation

  • Khan, Hamza M Abdul Mateen & Siddiqui, Danish Ahmed, 2026. "AI Adoption in Islamic Finance using Extended TAM Model with Moderation of Shariah Compliance Perception, Perceived Risk, Perceived Trust," EconStor Preprints 341085, ZBW - Leibniz Information Centre for Economics.
    • Handle: RePEc:zbw:esprep:341085
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/341085/3/Thesis-AI-Adoption.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Anol Bhattacherjee & Chieh-Peng Lin, 2015. "A unified model of IT continuance: three complementary perspectives and crossover effects," European Journal of Information Systems, Taylor & Francis Journals, vol. 24(4), pages 364-373, July.
    2. Tasya Aspiranti & Qaisar Ali & Oktofa Yudha Sudrajad & Sulistya Rusgianto, 2023. "Shariah governance reporting of Islamic banks: An insight from Malaysia," Cogent Business & Management, Taylor & Francis Journals, vol. 10(2), pages 2247220-224, December.
    3. Francisco Liébana-Cabanillas & Nidhi Singh & Zoran Kalinic & Elena Carvajal-Trujillo, 2021. "Examining the determinants of continuance intention to use and the moderating effect of the gender and age of users of NFC mobile payments: a multi-analytical approach," Information Technology and Management, Springer, vol. 22(2), pages 133-161, June.
    4. Giang-Do Nguyen & Minh-Tri Ha, 2021. "The role of user adaptation and trust in understanding continuance intention towards mobile shopping: An extended expectation-confirmation model," Cogent Business & Management, Taylor & Francis Journals, vol. 8(1), pages 1980248-198, January.
    5. Malaquias, Rodrigo F. & Hwang, Yujong, 2019. "Mobile banking use: A comparative study with Brazilian and U.S. participants," International Journal of Information Management, Elsevier, vol. 44(C), pages 132-140.
    6. Simarpreet Kaur & Sangeeta Arora, 2023. "Understanding customers’ usage behavior towards online banking services: an integrated risk–benefit framework," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 28(1), pages 74-98, March.
    7. Shyh-ming Lin, 2017. "Identify predictors of university students’ continuance intention to use online carbon footprint calculator," Behaviour and Information Technology, Taylor & Francis Journals, vol. 36(3), pages 294-311, March.
    8. Akansha Mer & Amarpreet Singh Virdi, 2023. "Modeling Millennials’ Adoption Intentions of E-banking: Extending UTAUT with Perceived Risk and Trust," FIIB Business Review, , vol. 12(4), pages 425-438, December.
    9. Viswanath Venkatesh & Fred D. Davis, 2000. "A Theoretical Extension of the Technology Acceptance Model: Four Longitudinal Field Studies," Management Science, INFORMS, vol. 46(2), pages 186-204, February.
    10. Teck Ming Tan & Saila Saraniemi, 2023. "Trust in blockchain-enabled exchanges: Future directions in blockchain marketing," Journal of the Academy of Marketing Science, Springer, vol. 51(4), pages 914-939, July.
    11. Emad Masoud & Hanan AbuTaqa, 2017. "Factors Affecting Customers' Adoption of E-Banking Services in Jordan," Information Resources Management Journal (IRMJ), IGI Global Scientific Publishing, vol. 30(2), pages 44-60, April.
    12. Fred D. Davis & Richard P. Bagozzi & Paul R. Warshaw, 1989. "User Acceptance of Computer Technology: A Comparison of Two Theoretical Models," Management Science, INFORMS, vol. 35(8), pages 982-1003, August.
    13. Sheppard, Blair H & Hartwick, Jon & Warshaw, Paul R, 1988. "The Theory of Reasoned Action: A Meta-analysis of Past Research with Recommendations for Modifications and Future Research," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 15(3), pages 325-343, December.
    14. Giang-Do Nguyen & Thu-Hien Thi Dao, 2024. "Factors influencing continuance intention to use mobile banking: an extended expectation-confirmation model with moderating role of trust," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 11(1), pages 1-14, December.
    15. Shangeetha Sukumaran & Thai Siew Bee & Shaista Wasiuzzaman, 2022. "Cryptocurrency as an Investment: The Malaysian Context," Risks, MDPI, vol. 10(4), pages 1-17, April.
    16. Singh, Nidhi & Sinha, Neena & Liébana-Cabanillas, Francisco J., 2020. "Determining factors in the adoption and recommendation of mobile wallet services in India: Analysis of the effect of innovativeness, stress to use and social influence," International Journal of Information Management, Elsevier, vol. 50(C), pages 191-205.
    17. Zeleke Siraye Asnakew, 2020. "Customers’ Continuance Intention to Use Mobile Banking: Development and Testing of an Integrated Model," The Review of Socionetwork Strategies, Springer, vol. 14(1), pages 123-146, April.
    18. Khaled Alzeaideen, 2019. "Credit risk management and business intelligence approach of the banking sector in Jordan," Cogent Business & Management, Taylor & Francis Journals, vol. 6(1), pages 1675455-167, January.
    19. Issa Hamadou & Aimatul Yumna & Hawaou Hamadou & Mamadou Salieu Jallow, 2024. "Unleashing the power of artificial intelligence in Islamic banking: A case study of Bank Syariah Indonesia (BSI)," Modern Finance, Modern Finance Institute, vol. 2(1), pages 131-144.
    20. Muhammad Athar Nadeem & Zhiying Liu & Abdul Hameed Pitafi & Amna Younis & Yi Xu, 2021. "Investigating the Adoption Factors of Cryptocurrencies—A Case of Bitcoin: Empirical Evidence From China," SAGE Open, , vol. 11(1), pages 21582440219, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ahmed Almgrashi & Abdulwahab Mujalli & Tehmina Khan & Osama Attia, 2023. "Factors determining internal auditors’ behavioral intention to use computer-assisted auditing techniques: an extension of the UTAUT model and an empirical study," Future Business Journal, Springer, vol. 9(1), pages 1-19, December.
    2. Paul Juinn Bing Tan, 2013. "Applying the UTAUT to Understand Factors Affecting the Use of English E-Learning Websites in Taiwan," SAGE Open, , vol. 3(4), pages 21582440135, October.
    3. Viswanath Venkatesh, 2000. "Determinants of Perceived Ease of Use: Integrating Control, Intrinsic Motivation, and Emotion into the Technology Acceptance Model," Information Systems Research, INFORMS, vol. 11(4), pages 342-365, December.
    4. Gao, Tao (Tony) & Rohm, Andrew J. & Sultan, Fareena & Pagani, Margherita, 2013. "Consumers un-tethered: A three-market empirical study of consumers' mobile marketing acceptance," Journal of Business Research, Elsevier, vol. 66(12), pages 2536-2544.
    5. Banu Demirel & Ayça Kübra Hızarcı Payne, 2018. "Social Innovation Adoption Behavior: The Case of Zumbara," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 15(02), pages 1-19, April.
    6. Mamonov, Stanislav & Benbunan-Fich, Raquel, 2017. "Exploring factors affecting social e-commerce service adoption: The case of Facebook Gifts," International Journal of Information Management, Elsevier, vol. 37(6), pages 590-600.
    7. Park, Jungkun & Yun, Jeewoo & Chang, Woondeog, 2024. "Intention to adopt services by AI avatar: A protection motivation theory perspective," Journal of Retailing and Consumer Services, Elsevier, vol. 80(C).
    8. Rania Pasha & Israa Lewaaelhamd & May M. Fahmy, 2026. "Examining the determinants of internet banking continuity adoption behaviour post-COVID-19," Future Business Journal, Springer, vol. 12(1), pages 1-22, December.
    9. Abed Alnaser Nazmi N. Daana & Figen YeÅŸilada, 2025. "Diffusion of Cryptocurrency Among Arab Adopters: How Are Digital Technostress, Ethical Concerns, and Government Regulations Interconnected?," SAGE Open, , vol. 15(3), pages 21582440251, July.
    10. D. Harrison McKnight & Vivek Choudhury & Charles Kacmar, 2002. "Developing and Validating Trust Measures for e-Commerce: An Integrative Typology," Information Systems Research, INFORMS, vol. 13(3), pages 334-359, September.
    11. Jasmine A. L. Yeap & T. Ramayah & Pedro Soto-Acosta, 2016. "Factors propelling the adoption of m-learning among students in higher education," Electronic Markets, Springer;IIM University of St. Gallen, vol. 26(4), pages 323-338, November.
    12. Giang-Do Nguyen & Thu-Hien Thi Dao, 2024. "Factors influencing continuance intention to use mobile banking: an extended expectation-confirmation model with moderating role of trust," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 11(1), pages 1-14, December.
    13. Konstantinos Dendrinos & George Spais, 2024. "An investigation of selected UTAUT constructs and consumption values of Gen Z and Gen X for mobile banking services and behavioral intentions to facilitate the adoption of mobile apps," Journal of Marketing Analytics, Palgrave Macmillan, vol. 12(3), pages 492-522, September.
    14. Drăgan, George Bogdan & Ben Arfi, Wissal & Tiberius, Victor & Ammari, Aymen & Khvatova, Tatiana, 2025. "Navigating the green wave: Understanding behavioral antecedents of sustainable cryptocurrency investment," Technological Forecasting and Social Change, Elsevier, vol. 210(C).
    15. Deepak Chawla & Himanshu Joshi, 2025. "Degree of Awareness and the Antecedents of the Digital Media Platform: The Case of Mobile Wallets," FIIB Business Review, , vol. 14(4), pages 491-506, August.
    16. Magno, Francesca & Cassia, Fabio, 2024. "Predicting restaurants’ surplus food platform continuance: Insights from the combined use of PLS-SEM and NCA and predictive model comparisons," Journal of Retailing and Consumer Services, Elsevier, vol. 79(C).
    17. Casaló, Luis V. & Flavián, Carlos & Guinalíu, Miguel, 2010. "Determinants of the intention to participate in firm-hosted online travel communities and effects on consumer behavioral intentions," Tourism Management, Elsevier, vol. 31(6), pages 898-911.
    18. Chang, Yung-Chi & Enkhjargal, Uguumur & Huang, Chen-I & Lin, Wen-Ling & Ho, Chi-Ming, 2020. "Factors Affecting the Internet Banking Adoption," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 54(3), pages 117-131.
    19. Christopher R. Plouffe & John S. Hulland & Mark Vandenbosch, 2001. "Research Report: Richness Versus Parsimony in Modeling Technology Adoption Decisions—Understanding Merchant Adoption of a Smart Card-Based Payment System," Information Systems Research, INFORMS, vol. 12(2), pages 208-222, June.
    20. Tianyang Huang & Gang Wang & Chiwu Huang, 2024. "What promotes the mobile payment behavior of the elderly?," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 11(1), pages 1-14, December.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:esprep:341085. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/zbwkide.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.