ARTIFICIAL INTELLIGENCE AND SHARĪʿAH AUDIT: DEVELOPING ETHICAL GOVERNANCE MODELS FOR ISLAMIC FINANCIAL INSTITUTIONS
DOI:
https://doi.org/10.59623/1thmzs83Keywords:
Artificial Intelligence, Sharīʿah Audit, Islamic Financial, Ethical FinanceAbstract
The convergence of artificial intelligence (AI) with Sharīʿah audit mechanisms presents a transformative opportunity for Islamic financial institutions (IFIs) seeking to reinforce ethical governance amid rapid digital disruption. This study investigates how AI-driven tools—including natural language processing, machine learning, and blockchain-integrated audit systems—can be systematically embedded within the Sharīʿah governance architecture of IFIs without compromising the primacy of divine normativity enshrined in Islamic jurisprudence. Drawing upon a systematic literature review of 40 peer-reviewed sources spanning 2022–2026, complemented by a conceptual framework grounded in Maqāṣid al-Sharīʿah, this paper develops the AI-Integrated Sharīʿah Governance (AISG) model—a tiered, ethically bounded architecture that maps AI functionalities to discrete audit domains. The study identifies five principal governance dimensions: compliance automation, fatwa advisory augmentation, risk surveillance, transparency enhancement, and accountability reporting. Findings demonstrate that while AI substantially increases audit efficiency and real-time compliance monitoring, persistent challenges encompassing algorithmic opacity, data sovereignty concerns, the irreplaceability of human scholarly discretion, and cross-jurisdictional regulatory fragmentation must be systematically resolved. The AISG model offers a replicable framework for regulators, Sharīʿah supervisory boards, and fintech developers operating across Muslim-majority and dual-banking jurisdictions. This research contributes to the nascent body of knowledge on AI governance in Islamic finance, offering both theoretical scaffolding and actionable policy recommendations.
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