Artificial Intelligence (AI), blockchain, and smart contracts are no longer futuristic concepts—they are here and transforming the financial services landscape. Islamic finance, built on the principles of trust, transparency, and ethics, must seize these technologies to remain resilient, inclusive, and competitive.
AI offers new models for Shari'ah compliance automation, risk management, and customer engagement. Blockchain promises transparent, tamper-proof records ideal for sukuk issuance, zakat distribution, and halal supply chains. Smart contracts can revolutionize Islamic contracts like murabaha, ijarah, and takaful, making them self-executing and efficient.
However, these technologies also raise critical questions:
• How can they be aligned with Shari'ah principles?
• What governance structures are necessary to maintain Islamic ethics in the digital space?
• What risks must Islamic financial institutions be prepared for?
To answer these and more, IBS, alongside its international partners, is hosting a specialized 3-day workshop to explore the new frontier where emerging technology meets Islamic finance.
• Demystify AI, blockchain, and smart contracts for Islamic finance professionals.
• Explore use cases where emerging tech supports Shari’ah-compliant finance.
• Discuss Shari’ah, ethical, and legal considerations for deploying these technologies.
• Promote collaboration between Islamic financial institutions, scholars, technologists, and regulators.
• Equip stakeholders with practical tools and frameworks to implement innovation safely and ethically.
1: Introduction to Emerging Technologies
• Introduction/Refresher "Islamic Finance at the Crossroads: Embracing AI and Blockchain for Good"
o Introduction to Blockchain Technology:
How it works, key concepts, distributed ledger, immutability
o Introduction to Artificial Intelligence and Machine Learning:
Definitions, key applications, opportunities, and risks
• Group Assignment
o Blockchain for Islamic Finance: Crafting a Transaction solution
• Interactive Discussion:
o Myths vs. Realities of AI and Blockchain in Islamic Finance
2: Smart Contracts, Shari'ah Implications, and Ethical Challenges
o Understanding Smart Contracts:
How they function, use cases in Islamic modes of financing
o Smart Sukuk, Takaful Smart Contracts, Automated Musharakah and Murabaha: Case Studies
:
• Group Discussion:
o "Can Smart Contracts Fulfill Shari’ah Requirements for Consent, Gharar, and Documentation?"
o Ethical AI in Islamic Finance:
Fairness, transparency, accountability, and bias mitigation strategies
3: Strategy Labs, Risks, and Roadmaps
o Risks and Challenges:
Cybersecurity threats, smart contract vulnerabilities, regulatory gaps
• Session 7:
o Islamic Governance Models for AI and Blockchain:
Digitial Shari’ah audit: A live Demo
• Innovation Strategy Labs:
o Participants work in groups to design a digital Islamic finance solution using AI, blockchain, and/or smart contracts
• Islamic banking and finance staff and executives
• Shari’ah scholars and compliance officers
• Fintech innovators and developers
• Central bank staff, policymakers and regulators
• Legal advisors, auditors, and academicians