The Role of Generative Artificial Intelligence in Managing Speculative Financing Risks in Islamic Banks

Artificial intelligence has witnessed great importance and rapid growth in light of the rapid technical development, the increase and diversity of the volume of data, the power and speed of computers, and the accuracy of machine learning models, so that the role of machines has become not only limited to understanding our world, but contributing strongly to shaping it, and here the role of generative artificial intelligence has emerged to reflect... How machines interact with users and generate new and innovative content. Given the interest of the early theorists of Islamic banking in speculation as a basic formula for mobilizing and using resources in Islamic banks, as it is more capable of accumulating investable cash balances, and more capable of distributing available monetary resources to the best uses for the purposes of economic and social development, and contributing directly to the fair distribution of national income. In view of what we see in our contemporary reality of the limited dealing with speculative financing in Islamic banks, due to considerations related to the difficulty of managing their risks, whether these considerations relate to the Islamic bank itself, the financing clients, or the surrounding circumstances. This reality represents a problem for which practical solutions need to be sought. The importance of the research appears to be that, in light of the emergence of artificial intelligence in general and generative artificial intelligence in particular, generative artificial intelligence can be utilized in managing the risks of speculative financing in a way that enables the Islamic bank to protect its funds and opens the way towards development horizons instead of focusing financing on debts. The research aims to identify generative artificial intelligence in terms of its concept, origins, development, and relationship to finance, and the prospects for benefiting from it to contribute to managing the risks of speculative financing in Islamic banks. The research relies on the descriptive and analytical approach, as this approach is consistent with the nature of the research topic, as well as its objectives. The research addressed the definition of artificial intelligence and generative artificial intelligence, the definition of speculative financing and its risks in Islamic banks, and the role of generative artificial intelligence in managing the risks of speculative financing in Islamic banks. The research reached the role that generative artificial intelligence can play in managing speculative financing risks in Islamic banks, whether it comes to the stages of managing those risks or their mechanisms.