SHARI’AH COMPLIANCE CHALLENGES OF USING AI IN ISLAMIC FINANCIAL MARKETS
13 October 2025 | Iranian Association of Islamic Finance Webinar Series





In an inspiring session, Dr. Mohamed Aslam Akbar, Associate Professor of Shari’ah Sciences and Deputy Dean (Postgraduate, Research & Innovation) at the International Islamic University Malaysia, addressed the rising ethical and jurisprudential concerns surrounding the use of Artificial Intelligence (AI) in Islamic financial markets. His talk, titled Shari’ah Compliance Challenges of Using AI, explored the intersection of emerging technologies with Islamic legal principles. Dr. Aslam framed the discussion by recognising the growing role of AI and robotics in financial services, including algorithmic trading, automated risk assessment, and customer profiling. He cautioned, however, that the automation of decision-making introduces profound risks, particularly regarding transparency, fairness, and accountability, elements deeply tied to Shari’ah values
The lecture identified key fiqh principles essential for governing AI behaviour: avoiding harm (la darar wa la dirar), ensuring accountability (mas’uliyyah), upholding contractual clarity (gharar avoidance), and preserving human dignity and privacy (hurmah). Dr. Aslam also presented real-world examples of AI misuse, warning of its potential to perpetuate discrimination, manipulate financial behaviour, or obscure responsibility, risks that could compromise both Shari’ah compliance and market trust. To address these challenges, he proposed a Shari’ah-Based Cyber Resilience Framework, integrating legal and ethical safeguards within AI development and deployment. He urged Islamic finance institutions to establish proactive technology risk management mechanisms rooted in both classical jurisprudence and contemporary cyber law.
The session concluded with a call to action: Islamic financial authorities must engage in ijtihad to provide guidance on emerging AI risks, ensuring that innovation aligns with maqasid al-Shari’ah, particularly the protection of wealth (hifz al-mal), intellect (‘aql), and dignity (‘ird). This session was part of the IAFI’s commitment to exploring cutting-edge challenges in Islamic financial regulation and practice.