The Impact of Artificial Intelligence on the Governance of Islamic Finance Contracts

Abstract

This study explores the impact of artificial intelligence on the governance of Islamic finance contracts. Islamic banking faces increasing challenges due to the complexity of financial contracts and the rapid pace of digital transformation. The research highlights how AI can automate Sharia compliance auditing, detect prohibited elements such as riba and gharar, and reduce operational risks through instant review and proactive alerts. AI also strengthens governance and transparency by providing digital documentation of contract review stages, while accelerating contract approval cycles to improve efficiency and customer trust. The study addresses a clear gap in the literature by offering a methodological framework that integrates Sharia, legal, and technological perspectives, proposing a balanced governance model that harmonizes technological innovation with compliance requirements.