The Potential Roles of Artificial Intelligence in Shariah Supervision in Islamic Banks: Analytical Study

Abstract

Sharia supervision plays a vital role in Islamic banks to ensure that banking products and operations comply with Sharia law. With technological advancements, Artificial Intelligence (AI) has become an effective tool to enhance the efficiency and accuracy of Sharia supervision. The challenge presented in this paper is that the traditional approach to Sharia supervision in Islamic banks may be marred by some issues due to its reliance on human resources, in addition to the delay in completing transactions referred to the supervision committee. Hence, the idea of applying AI to supervision, even if only partially, contributes to reducing human error and increasing the speed of analysis and review. The roles of AI include, but are not limited to, automated analysis of Sharia texts, detection of suspicious transactions, automated auditing, and improving customer experience. This paper is based on inductive and analytical approaches. This process is not without challenges and difficulties, which officials must work to overcome, in line with the message of Islamic jurisprudence, which is to accommodate variables. The integration of technology and Sharia expertise is required and essential to ensure Islamic banks' compliance with Sharia law.