DIGITISATION AND ARTIFICIAL INTELLIGENCE IN THE ISLAMIC FINANCE INDUSTRY
INDUSTRY INNOVATION AND SHARIAH COMPLIANCE AUTOMATION
Keywords:
Islamic finance, artificial intelligence, FinTech, Shariah auditAbstract
Islamic finance has gained significant traction globally, with Malaysia emerging as one of its most sophisticated hubs. The integration of digitisation and artificial intelligence (AI) into this sector presents both opportunities and challenges. This paper explores how FinTech solutions, including blockchain, big data analytics, and AI, are revolutionising operations within Islamic financial institutions while ensuring adherence to Shariah principles. The study critically examines Malaysia’s regulatory frameworks, institutional capacity, and innovation landscape, offering insights into the automation of Shariah compliance and system governance. The article also identifies emerging risks, such as Shariah non-compliance in algorithmic models, and proposes a governance-based audit framework aligned with Islamic jurisprudence. Through a combination of ecosystem analysis, case studies, and strategic foresight, this paper aims to contribute to the discourse on sustainable, ethical digitisation in Islamic finance.
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