The Role of Artificial Intelligence in Advancing Islamic Banking Operations

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Summarized Fatawaa

Are all the children of a suckling woman considered brothers to the strange child whom their mother had breastfed, or just to the one who had suckled with him?

All the children of the woman who had suckled a strange child are considered his/her brothers and sisters.

A person bought a device through a usurious bank, and receives income from it every month after paying the bank for the price. Now the person regrets it, what should he do now?

This person has fallen into what is forbidden due to dealing with usury. He must repent sincerely, and whoever repents, Allah Will Accept their repentance. As for the device, there is no need to sell it. And Allah Knows Best

Does the deceased hear the supplications or recitations of those visiting his/her grave? And does making constant supplications for the deceased who didn`t adhere to performing the prescribed prayers ameliorate his/her affliction?

Praise be to Allah the Lord of the Worlds.

In principle, the dead hear the living since it has been rigorously authenticated that the Prophet (PBUH) ordered the bodies of the idolaters slain in the Battle of Badr to be buried. He then approached them and called them one by one and said: "Have you found what your Lord promised to be true for we have found what our Lord promised us to be true." Umar asked him: "O messenger of God! Why do you speak to lifeless bodies?" The Prophet (PBUH) replied: "By the One Who has sent me with the truth! You do not hear my words better than they do except that they cannot respond." [Agreed upon].

However, not all the deceased are in the same situation because Allah The Almighty Knows: "Before them is a Partition till the Day they are raised up." [Al-Mu`minun/100]. Moreover, supplication reaches the deceased. And Allah Knows Best..

If someone bought a car from an interest-based bank and then sold it to another person, does the second person bear any sin if they use the car's price to pay the installments owed to the bank?

When the buyer purchased the car, it became their property, and the price became their responsibility. The bank acts as the seller's agent for receiving the payment. Therefore, there is no sin on the second buyer, God willing, as long as the bank does not impose an increase in the amount if a payment is delayed. And Allah The Almighty Knows Best.

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The Role of Artificial Intelligence in Advancing Islamic Banking Operations

Author : Dr. Safwan Odaybat

Date Added : 03-01-2024

The Role of Artificial Intelligence in Advancing Islamic Banking Operations

All perfect praise be to Allah the Lord of the Worlds. May His peace and blessings be upon our Prophet Mohammad and upon all his family and companions.

One of the emerging topics for which seminars and conferences are held, and attracts researchers to study and explore its potential developments across various fields and disciplines is the subject of Artificial Intelligence. This topic elicits concerns about its potentially destructive impacts on one hand, while on the other hand, it raises hopes and expectations for significant positive effects on improving the quality of life and serving humanity.

Before delving into explaining the impact of Artificial Intelligence on Islamic banking, it is essential to clarify the meaning of Artificial Intelligence and Islamic banking:

Artificial Intelligence can be defined as a set of technologies and software aimed at enabling computer systems to perform tasks that are typically considered important for human intelligence and facilitate operations associated with specific tasks.

Artificial Intelligence relies on data and algorithms to achieve specific objectives. Its applications encompass a diverse range of fields such as machine learning, natural language processing, robotics manufacturing, medical diagnosis, risk management, and more.

Islamic banking can be defined as a financial system based on the principles of Islamic law (Sharia). This system requires abstaining from practices such as usury (interest), uncertainty or speculation (Gharar), and injustice. It encourages financing and investment in ways that are in tune with Islamic values and principles.

The role of artificial intelligence in advancing the operations and services of Islamic banking is highlighted through the following:

1-Enhancing Efficiency and Risk Management:

Artificial intelligence can contribute to the development of Islamic banking by improving its operational efficiency through enhancing analysis processes and risk management. One possible means to achieve this is by utilizing machine learning to enhance credit assessment, identifying potential loans with greater accuracy and efficiency. Additionally, artificial intelligence will contribute to boosting employee efficiency by selecting suitable development, training, and educational methods tailored to their needs.

2-Development of Innovative Financial Products:

Artificial intelligence enables Islamic banking to develop innovative financial products that align with the principles of Islamic Sharia. For example, smart investment solutions can be developed based on financial analytics and Sharia-compliant guidelines.

3-Enhancement of Customer Experience:

Artificial intelligence can improve customer experiences in Islamic banking by providing personalized financial services tailored to the specific needs of customers. It can offer accurate investment guidance that aligns with customers' goals without conflicting with Islamic values.

4-Combatting Money Laundering and Terrorism Financing:

Artificial intelligence can contribute to enhancing financial integrity through intelligent operations that develop and improve the quality of monitoring financial transactions. Consequently, it can uncover all illicit and internationally prohibited activities, including money laundering and terrorism financing.

5-Facilitating Compliance with Islamic Sharia:

Artificial intelligence contributes to the development of Islamic banking by achieving better compliance with the rules of Sharia. This can be accomplished by providing guidance to financial professionals or by enhancing financial audit and monitoring processes.

In conclusion, the topic of the impact of artificial intelligence on Islamic banking in general requires precise scientific studies and research to highlight both the positive aspects and potential challenges. While artificial intelligence may contribute to enhancing the efficiency of financial services and their compliance with Sharia, ethical considerations and Islamic values must be taken into account in the application of this modern technological advancement.

Article References:

1-Book: "Artificial Intelligence and Its Impact on the Economy and Islamic Banking" by Dr. Rafiq Ali Suleiman.

2-Book: "Islamic Banking and Artificial Intelligence Technology: Challenges and Opportunities" by Dr. Mohammed Al Nuaimi.

3-Research Paper: "Artificial Intelligence Technology and Its Impact on Islamic Financial Services" by Researcher Ahmed Abdullah Al Salman.

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Summarized Fatawaa

I have been married for five years. My husband has two sons from his first marriage. Nevertheless, I took care of his children, and gave birth to a baby boy who is now three years old. Unfortunately, we keep fighting all the time; sometimes over his two sons and sometimes over his family. If I serve his family members and praise them, he treats me kindly. If I don`t, he turns my life into living hell. What should I do?

All perfect praise be to Allah, The Lord of The Worlds, and may His Peace and Blessings be upon our Prophet Muhammad and upon all of his family and companions.

Spouses should live with each other on a footing of kindness and equity. In your case, constructive dialogue is the best course of action. We advise you to be patient, commit your affair to Allah and ask Him to help you. We also recommend that you seek the help of the people of goodness and make them fix things between you and your husband. If all attempts for reconciliation fail then go to court, but we remind you that a problem, which could be solved with a beautiful word, is no problem at all, so praise family and children and try your best to win their hearts. And Allah The Almighty Knows Best.

A woman used contraceptive pills, and her menses exceeded (15) days, is it permissible for her to fast?

The maximum of menstrual blood is (15) days, but if it exceeded that due to a medication, or the like, then it is Istihadah (bleeding outside the monthly period), and in this case she should perform Ghusl (ritual bath), pray, and fast. Moreover, she is obliged to make up for the missed fasting days which exceeded her regular menses. And Allah Knows Best.

What should a praying person who doubts having offered one, or two prostrations in the third Rakah (unit of prayer) do?

Whoever has doubts about their prayer should consider what is less i.e. the above person should offer another Sajda (prostration) and complete his/her prayer, then offer Sujood As-Sahw (prostration of forgetfulness). And Allah Knows Best.

Talking to one's fiancée in Ramadan with romantic talk may lead to arousal, and if pre-ejaculate fluid (Madhy) is discharged as a result, it does not break the fast. However, it is advised to avoid actions that provoke desire and lead to this outcome. If semen (Mani) is discharged as a result, it does break the fast.

The discharge of Madhy doesn't invalidate one's fasting but it invalidates the ablution and his clothes must be washed because they are impure in this case. As for Mani, it breaks one's fast and making up invalidataed is obligatory, beside; a Muslim suitor should abstain from these matters during Ramadan and not to degrade the holy month to this extent. And Allah Knows Best.