Artificial Intelligence and its Role in Supporting Decision-Making and Fatwas in Islamic Financial Institutions: A Fundamental and Applied Jurisprudential Study on the Fatwa and Sharia Consultation Platform of Bahrain Islamic Bank

Abstract

This study addresses the topic of artificial intelligence (AI) and its role in supporting decision-making and issuing fatwas in Islamic financial institutions, specifically the Sharia platform of Bahrain Islamic Bank. This topic is of paramount importance and significantly impacts the operations of these institutions. The adoption of AI in Islamic financial institutions is a relatively new and crucial issue requiring further examination. AI holds immense significance and plays a vital role in the future of Islamic finance, necessitating a balance between facilitating access to fatwas through AI and ensuring adherence to Sharia principles. Therefore, it is essential to highlight the potential contribution of AI in Islamic financial institutions, particularly in supporting financial decision-making and issuing fatwas, and to outline the guidelines governing its application. This is achieved through a practical model that Islamic financial institutions can utilize, along with clear recommendations for the effective use of AI in this field. This study aims to demonstrate the importance of leveraging AI tools in Islamic financial institutions by examining the Sharia platform of Bahrain Islamic Bank. This platform represents a valuable addition to Islamic financial institutions by effectively regulating the relationship between AI and Sharia principles, thereby enhancing trust in the products and services offered. The study confirmed the capabilities of artificial intelligence in supporting decision-making, its excellence in accurately classifying and summarizing financial rulings in a simplified and accessible manner, while maintaining the accuracy of the legal content. It also highlighted the precise balance between technology and Islamic jurisprudence by demonstrating the effectiveness of the Al-Murshid platform for fatwas and Sharia consultations in providing these rulings and consultations in a contemporary way, while emphasizing the crucial role of Sharia supervisory and fatwa boards.