A Maqāṣid Approach to Artificial Intelligence in Islamic Banking

Abstract

This research proposes a Maqāṣid–AI framework (MAF) as a normative lens to evaluate whether the integration of artificial intelligence (AI) in Islamic banking enhances Maqāṣid (the higher purposes of Islamic law). AI has significantly transformed Islamic banking, creating unique opportunities and enhancing efficiency through smart and seamless operations. Yet, Sharī’ah compliance and ethical challenges such as system opacity, explainable AI, algorithmic bias, and data privacy remain. This is because current research is mainly descriptive and lacks a solid theoretical framework to evaluate the performance of AI. This research proposes a Maqāṣid framework that aligns Sharī’ah ethical values with technological innovations. It addresses existing gaps in the literature by proposing an operational framework to evaluate the integration of AI with maqāṣid, including the preservation of faith (dīn), life (nafs), intellect (ʿaql), dignity (ʿird), and wealth (māl). The MAF is developed across three key stages, Innovation in Application and Development, Regulation in Governance and Risk Mitigation, and Repercussion in Evaluation and Prevention, to uphold Islamic ethical values. From this background, the research critically assesses recent AI literature alongside the classical maqāṣid theoretical principle of maṣlaḥa (benefit maximisation) to provide a normative blueprint for regulators, Sharī’ah scholars, and banking professionals seeking ethical AI adoption. The research highlights implications for corporate governance, emphasising the need for maqāṣid-based governance policies.

https://doi.org/10.26803/MyRes.2026.22