Human Scholars or Intelligent Machines? Reassessing Sharī‘ah Decision-Making in Islamic Finance

Abstract

The rapid advancement of Artificial Intelligence (AI) is reshaping the Islamic finance industry through applications in compliance monitoring, risk management, fraud detection, and decision-support systems. While AI offers significant operational benefits, its growing role in Sharī‘ah governance raises critical questions regarding legal authority, ethical accountability, and the legitimacy of AI-assisted decision-making. This study examines the epistemological limits of AI in Sharī‘ah decision-making and explores how intelligent technologies can be integrated into Islamic financial governance without compromising the objectives of Islamic law. This research employs a qualitative library research approach, drawing on classical Islamic legal sources, contemporary literature on AI and Islamic finance, and governance frameworks issued by Islamic financial institutions. Data were analyzed using thematic content analysis and evaluated through the lens of Maqāṣid al-Sharī‘ah. The findings indicate that although AI possesses superior capabilities in data processing, pattern recognition, and compliance assessment, it cannot replicate the essential elements of Islamic legal reasoning, including contextual interpretation, ethical judgment, consideration of public welfare, and moral responsibility. Consequently, AI cannot function as an autonomous Sharī‘ah authority. However, it can significantly enhance governance effectiveness when utilized as a decision-support instrument. Based on these findings, the study proposes a Maqāṣid-Based Human–AI Collaborative Governance Model, in which AI supports analytical functions while final authority remains with qualified Sharī‘ah scholars. The study concludes that the future of Islamic finance lies not in replacing human scholars with intelligent machines but in establishing a collaborative governance framework that aligns technological innovation with the higher objectives of Sharī‘ah.