THE IMPACT OF ARTIFICIAL INTELLIGENCE ON ‘ISLAMIC BANKING OPERATIONS AND DECISION-MAKING’. RESEARCH ON BANGLADESH PERSPECTIVE.

The rapid development of Artificial Intelligence (AI) has begun to change the global financial services landscape, including Islamic banking. This study examines the influence of AI on the operations and decisionmaking processes of Islamic banking, particularly in the context of Bangladesh. The research investigates how AI technologies—such as machine learning, natural language processing, and intelligent automation—are being incorporated into Shariah-compliant banking systems to improve operational efficiency, customer service, risk management, and adherence to Islamic principles. By utilizing a mixed-methods approach that includes surveys and interviews with professionals in Islamic banking, as well as secondary data analysis, the study identifies emerging trends, opportunities, and challenges in the adoption of AI. Findings indicate that while AI tools are beginning to support credit scoring, fraud detection, customer personalization, and automation of Shariah advisory services, significant obstacles persist. These include inadequate digital infrastructure, skill shortages, regulatory uncertainty, and ethical issues regarding AI's alignment with Islamic values. The paper concludes with policy recommendations designed to promote a balanced and Shariah-compliant framework for integrating AI into Islamic banks in Bangladesh. This research adds to the ongoing discussion on Islamic fintech and provides practical insights for regulators, banks, and technology developers operating in emerging Islamic financial.