The study investigates the convergence of digital transformation, artificial intelligence (AI), and Islamic finance. In particular, it examines the ethical consequences that may arise from the integration of Generative AI in the sustainable development of Islamic financial services and products. This research fills a void in the current body of knowledge by examining the ethical consequences of generative AI in the context of Islamic finance. Using an interdisciplinary framework that integrates Islamic finance and technological ethics, the study seeks to make scientific and practical contributions. At the intersection of AI technology and Islamic finance, it is anticipated that new theories will emerge, as well as ethical principles that will serve as a guide for technology developers, policymakers, and Islamic financial institutions. The study has the potential to lead in creating a sustainable and inclusive Islamic finance ecosystem by ethically integrating Generative AI.
TopIntroduction
With the rapid advancement of the digital transformation era, Islamic finance undertakes a progressively significant role in fulfilling the prerequisites for sustainable financial inclusion(Al Shehab & Hamdan, 2021; Albalawee & Al Fahoum, 2023; Qudah et al., 2023; Tlemsani & Matthews, 2023). The implementation of artificial intelligence (AI) technology has significantly impacted the Islamic financial services industry, generating fresh opportunities for growth and enhanced accessibility and reach. However, there are a number of ethical challenges associated with this potential development that require cautious consideration, particularly in regards to the use of Generative AI in the development of Islamic financial products and services.
Islamic finance plays a pivotal role in promoting sustainable financial inclusion in the context of the digital era.(Ali et al., 2020; Baber, 2020; Ibrahim, 2015; Tahiri Jouti, 2018) On the basis of sharia law, justice, and sustainability, the Islamic financial system is emerging as a potential solution to meet the evolving needs of society. As AI technology continues to advance, the possibility of enhancing the effectiveness and efficiency of Islamic financial services grows in significance.
The implementation of Generative AI within the realm of Islamic finance offers a substantial potential for optimising the product and service development process(Abbas & Hafeez, 2021; Al Shehab & Hamdan, 2021). Artificial intelligence (AI) possesses the capability to perform exhaustive data analysis, delineate market trends, and identify investment opportunities that conform to the tenets of Islamic finance. However, in the midst of these advancements, an ethical aspect has surfaced as a subject of apprehension.
Concerning the application and interaction of Generative AI with the tenets of Islamic finance, an ethical dilemma emerges. A substantial challenge exists in ensuring that decisions produced by AI algorithms comply with the ethical principles and sharia law that underpin Islamic finance. Furthermore, it is imperative to conduct a comprehensive evaluation of the possibility of bias or inequity in AI decision-making in order to guarantee authentic and enduring financial inclusion.
This research endeavours to fill a longstanding gap in the body of knowledge concerning Islamic finance, specifically with respect to the integration of artificial intelligence. Notwithstanding the rapid expansion of Islamic finance, there remains a scarcity of understanding concerning the ethical ramifications of generative AI within this specific field, thereby resulting in unanswered inquiries. As the significance of Islamic finance as a foundation for inclusive sustainable finance increases, so does the urgency to address this research gap.
Unique among studies is the concentration on the ethical ramifications of generative AI as they pertain to Islamic finance. To promote progress in the discipline, this research employs an interdisciplinary structure that combines two significant and interrelated areas: Islamic finance and technological ethics. By employing this specific methodology, the inquiry is expanded to encompass not only the implementation of AI technology, but also its ramifications on the tenets and ideals of Islamic finance. Both academically and practically, significant contributions are anticipated from the research. From an academic standpoint, this research possesses the capacity to produce novel theories and conceptions concerning the convergence of AI technology and Islamic finance. In the interim, the practical contribution of this work is the development of ethical principles that can be utilised by Islamic financial institutions, policymakers, and technology developers as a guide when integrating Generative AI into the creation of sustainable Islamic financial products and services. Built upon a robust ethical framework, this study is anticipated to serve as a trailblazer in the development of an all-encompassing and enduring Islamic financial ecosystem via the implementation of AI technology.