HALAL FINTECH AND DIGITAL GOVERNANCE: RECONCILING ISLAMIC ECONOMIC EPISTEMOLOGY WITH AI-DRIVEN FINANCIAL INNOVATION
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AI Governance, Halal Fintech, Islamic Economic Epistemology
Abstract
The rapid expansion of artificial intelligence (AI) in financial technology is reshaping how financial products are structured, delivered, and consumed globally. However, the speed of digital transformation has raised critical ethical challenges concerning fairness, transparency, and accountability within automated financial decision-making systems. Islamic economic epistemology, rooted in the principles of justice, the prohibition of exploitation, and the preservation of human dignity, offers a robust normative foundation for governing financial innovation in Muslim-majority societies. This study aims to examine how Halal fintech ecosystems can integrate Islamic epistemological principles into AI-driven digital governance frameworks. A qualitative research methodology was adopted, combining analytical review of Islamic economic jurisprudence, policy documents, and AI governance literature with expert interviews involving Shariah scholars, fintech practitioners, and digital regulatory authorities. The findings indicate that aligning AI governance with Islamic economic values requires a paradigm shift from a profit-centric logic toward welfare-oriented and trust-centered design principles. Ethical elements such as explainability, data protection, and prevention of algorithmic discrimination must be embedded within the system’s architecture rather than applied as external compliance checks. The study concludes that a Shariah-informed AI governance model can strengthen public trust, enhance social equity, and accelerate inclusive financial growth within the Halal fintech sector. Future research should focus on developing measurable compliance indicators and regulatory frameworks that support responsible AI innovation while preserving Islamic moral imperatives.
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Copyright (c) 2026 Ahmet Demir, Lim Haeun, Elena Roth
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