Exploring the potential of artificial neural network in sharīʿah decision-making for digital banking: a literature review

AbstractThis study examines the application of Artificial Neural Networks (ANNs) in Islamic finance with a specific focus on their potential to enhance Sharīʿah decision-making within the digital banking landscape. It explores the intersection between Islamic jurisprudence (fiqh) and ANNs, elucidating the complex nature of Artificial Intelligence (AI) for stakeholders in the Islamic finance and digital banking sectors. The methodology employed in this study involves a comprehensive review of the literature on the potential of ANNs. This literature review systematically examines how ANNs can be integrated into Sharīʿah-compliant digital banking to enhance the decision-making processes, highlighting both opportunities and challenges. The findings highlight the paucity of literature on the potential of AI to streamline operations and enhance the efficacy of Sharīʿah-compliant decision-making in the digital age. The research also addresses the ethical considerations and governance challenges associated with implementing AI in Islamic finance, emphasising the need for robust frameworks to ensure ongoing alignment with Sharīʿah guidelines. The findings suggest a practical model, structure, and workable framework for ANNs to enhance efficiency, accuracy, and transparency in Sharīʿah decision-making in digital financial practices while also identifying areas for further investigation.