AI-POWERED COMPLIANCE: GOVERNANCE CHALLENGES AND OPPORTUNITIES FOR DIGITAL HALAL CERTIFICATION IN GLOBAL CROSS-BORDER TRADE
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Compliance Systems, Cross-Border Trade, igital Halal Certification
Abstract
The rapid expansion of global cross-border trade has increased the demand for halal certification systems that are reliable, transparent, and scalable. Traditional halal certification processes continue to face major challenges, including manual documentation, fragmented standards, limited interoperability, and exposure to fraud and mislabeling. The emergence of artificial intelligence (AI) offers new opportunities to strengthen compliance monitoring, automate verification processes, and enhance the credibility of halal governance frameworks. This study examines how AI-powered technologies can support digital halal certification while addressing regulatory, technological, and ethical challenges within global trade environments. The research aims to analyze governance opportunities and constraints associated with the integration of AI in halal certification systems. Specifically, it explores the potential of AI to automate compliance, facilitate the harmonization of diverse halal standards, and evaluate risks related to algorithmic decision-making. Using a qualitative mixed-methods approach, the study combines document analysis of international halal standards, semi-structured interviews with certification authorities and industry experts, and case studies of AI-enabled halal verification platforms. The data are analyzed through thematic coding and cross-case comparison to generate governance insights. The findings show that AI improves supply chain traceability, accelerates certification processes, and strengthens fraud detection. However, key challenges persist, including algorithmic transparency, data integration, cross-border regulatory alignment, and the need for Shariah oversight in automated systems. The study concludes that AI-powered halal compliance systems have significant transformative potential for global trade, provided that governance frameworks ensure accountability, Shariah compliance, and interoperability across jurisdictions.
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Copyright (c) 2025 Rina Farah, Aisha Al-Suwaidi, Johannes Muller
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