ARTIFICIAL INTELLIGENCE APPLICATIONS IN ASSESSING SHARIA COMPLIANCE AND RISK IN ISLAMIC FINTECH
Indonesia 
United Kingdom United Kingdom 
Abstract
Islamic fintech has experienced rapid growth as digital financial innovation expands globally, creating new opportunities for financial inclusion while generating complex challenges in maintaining Sharia compliance and managing emerging risks. Artificial Intelligence offers potential solutions through advanced data processing, predictive analytics, automated monitoring, and intelligent decision-support mechanisms. This study aimed to examine the applications of Artificial Intelligence in assessing Sharia compliance and improving risk management practices within Islamic fintech ecosystems. A mixed-methods research design was employed involving 150 participants consisting of Islamic fintech professionals, Sharia compliance experts, artificial intelligence specialists, and digital finance users. Data were collected through questionnaires, interviews, institutional documents, and AI system evaluations. Quantitative data were analyzed using descriptive statistics, correlation analysis, regression analysis, and comparative evaluation, while qualitative data were examined through thematic analysis. The findings revealed that AI significantly enhanced transaction monitoring, compliance assessment accuracy, anomaly detection, and risk prediction capabilities. The results also indicated that algorithm transparency and human oversight were essential factors influencing stakeholder trust and responsible AI adoption. The study concludes that Artificial Intelligence can strengthen Islamic fintech governance by integrating technological innovation with Sharia principles, ethical accountability, and adaptive risk management frameworks.
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