Strategic Communication for Artificial Intelligence Adoption in Islamic Finance: Governance, Ethics, and Public Trust

Alan Munandar; Rino Febrianno Boer; Sarah Yunizka

doi:10.32332/ijie.v8i01.13284

Authors

Alan Munandar LSPR Institute of Communication and Business
Rino Febrianno Boer LSPR Institute of Communication and Business
Sarah Yunizka LSPR Institute of Communication and Business

DOI:

https://doi.org/10.32332/ijie.v8i01.13284

Keywords:

Artificial intelligence; Islamic finance; Public trust; Shariah governance; Strategic communication.

Abstract

Objective: This study aims to examine how strategic communication can support the responsible adoption of Artificial Intelligence in Islamic financial institutions, ensuring that technological innovation remains ethically grounded, socially legitimate, and publicly trusted. Method: This study employs a structured qualitative literature review with thematic analysis by synthesizing scholarship on Artificial Intelligence in Islamic finance, Islamic banking transparency, shariah governance disclosure, explainable Artificial Intelligence, fintech trust, and Islamic ethical perspectives. Result: The findings show that Artificial Intelligence creates opportunities for compliance support, service modernization, institutional efficiency, and digital innovation, but also generates communication risks when institutions fail to explain how Artificial Intelligence systems operate, how decisions are reviewed, and how accountability is maintained. Implication: This study contributes to the literature by positioning strategic communication as a constitutive component of Artificial Intelligence governance across the planning, implementation, and evaluation stages of technological adoption in Islamic financial institutions. Originality or Novelty: This study provides a distinct theoretical contribution by shifting the focus of Artificial Intelligence adoption from purely technical capabilities to a communication-centered governance paradigm, conceptualizing strategic communication not as a post-hoc promotional activity but as an active structural mechanism that directly operationalizes Maqasid al-Shariah values throughout the technology deployment lifecycle.

Downloads

Download data is not yet available.

References

Abdul Rahim, M., Shaharuddin, N.,’Ain S., & Mohd Suki, N. (2024). Shariah governance disclosure and its effect on Islamic banks’ financial performance: evidence from Malaysia and GCC countries. Journal of Islamic Accounting and Business Research, 15(4), 619–642. https://doi.org/10.1108/JIABR-08-2021-0235

Abubakar Siddique, M., Rashid, A., & Tahir, U. (2023). Factors affecting the credibility of Islamic banking Sharī’ah approvals: Perception-based empirical study. Borsa Istanbul Review, 23(2), 426–442. https://doi.org/10.1016/j.bir.2022.11.010

Ahmad, N. F. G., & Zainan, N. I. N. (2025). AI, Shariah Governance, and Maqasid Shariah in Islamic Finance. International Journal of Research and Innovation in Social Science, IX(IX), 9972–9977. https://doi.org/10.47772/IJRISS.2025.909000822

Asutay, M. (2025). Islamic Moral Economy: Bringing Back Substantive Morality to Humanise Islamic Finance. Global Policy, 16(S1), 7–11. https://doi.org/10.1111/1758-5899.13487

Barom, M. N. (2018). Conceptualizing A Unified Normative Framework For Social Responsibility In Islamic Economics. International Journal of Economics, Management and Accounting, 26(2), 329–363.

Ben Abdallah, M., & Bahloul, S. (2021). Disclosure, Shariah governance and financial performance in Islamic banks. Asian Journal of Economics and Banking, 5(3), 234–254. https://doi.org/10.1108/AJEB-03-2021-0038

Bin-Armia, M. S., & Kambakov, Y. (2026). Artificial Intelligence and Shariah Governance in Islamic Finance: Institutional Design, Value Creation, and Risk Management. Sukuk: International Journal of Banking, Finance, Management and Business, 5(I), 49–61. https://sukukjournal.org.uk/index.php/sukuk/article/view/79

Bussmann, N., Giudici, P., Marinelli, D., & Papenbrock, J. (2020). Explainable AI in Fintech Risk Management. Frontiers in Artificial Intelligence, 3. https://doi.org/10.3389/frai.2020.00026

Elgattani, T., & Hussainey, K. (2021). The impact of AAOIFI governance disclosure on Islamic banks performance. Journal of Financial Reporting and Accounting, 19(3), 434–454. https://doi.org/10.1108/JFRA-03-2020-0053

El-Halaby, S., Hussainey, K., & Abou-El-Sood, H. (2018). The non-economic consequences of disclosure in Islamic banks. International Journal of Emerging Markets, 13(6), 1948–1968. https://doi.org/10.1108/IJoEM-12-2017-0572

Habib, Z. (2025). Ethics of Artificial Intelligence in Maqāṣid Al-Sharīa’s Perspective. KARSA Journal of Social and Islamic Culture, 33(1), 105–134. https://doi.org/10.19105/karsa.v33i1.19617

Haque, A. B., Islam, A. K. M. N., & Mikalef, P. (2023). Explainable Artificial Intelligence (XAI) from a user perspective: A synthesis of prior literature and problematizing avenues for future research. Technological Forecasting and Social Change, 186, 122120. https://doi.org/10.1016/j.techfore.2022.122120

Hidayah, N. N., Lowe, A., & De Loo, I. (2021). Identity Drift: The Multivocality of Ethical Identity in Islamic Financial Institution. Journal of Business Ethics, 171(3), 475–494. https://doi.org/10.1007/s10551-020-04448-x

Hu, B., & Wu, Y. (2023). Unlocking Causal Relationships in Commercial Banking Risk Management: An Examination of Explainable AI Integration with Multi-Factor Risk Models. Journal of Financial Risk Management, 12(03), 262–274. https://doi.org/10.4236/jfrm.2023.123014

Iqbal, M. S., Sukamto, F. A. M. S. B., Norizan, S. N. B., Mahmood, S., Fatima, A., & Hashmi, F. (2025). AI in Islamic finance: Global trends, ethical implications, and bibliometric insights. Review of Islamic Social Finance and Entrepreneurship, 70–85. https://doi.org/10.20885/RISFE.vol4.iss1.art6

Khan, T. (2025). AI Governance for Islamic Finance -A Dynamic Prescriptive Approach. SSRN. https://doi.org/10.2139/ssrn.5239754

Kharisma, D. B., Wiwoho, J., & Arsyad, I. (2025). AI meets Shariah: ensuring robo-advisors for compliance in Islamic mutual funds. Journal of Islamic Accounting and Business Research, 1–14. https://doi.org/10.1108/JIABR-10-2024-0388

Lacmanovic, S., & Skare, M. (2025). Artificial intelligence bias auditing – current approaches, challenges and lessons from practice. Review of Accounting and Finance, 24(3), 375–400. https://doi.org/10.1108/RAF-01-2025-0006

Lahusen, C., Maggetti, M., & Slavkovik, M. (2024). Trust, trustworthiness and AI governance. Scientific Reports, 14(1), 20752. https://doi.org/10.1038/s41598-024-71761-0

Liu, Y., Li, X., & Su, C. (2026). From Unstructured Text to Automated Insights: An Explainable AI Approach to Internal Control in Banking Systems. Systems, 14(3), 234. https://doi.org/10.3390/systems14030234

Maathuis, H., Stalenhoef, M., van Otterloo, S., Zwaal, R., van Montfort, K., & Sent, D. (2026). Designing effective explainable AI: a human-centered evaluation of explanation formats in financial decision-making. Frontiers in Artificial Intelligence, 9. https://doi.org/10.3389/frai.2026.1668029

Margaryan, M. (2025). Legitimacy Beyond Performance: Trust, Accountability, and Executive Authority in Transitional Regimes. Journal of Political Science: Bulletin of Yerevan University, 4(3(12)), 107–128. https://doi.org/10.46991/JOPS/2025.4.12.107

Mohd Najib, N. W., Basarud-din, S. K., & Fazial, F. (2025). Artificial Intelligence (Ai) In Islamic Finance: A Maqasid Al-Shariah Perspective. International Journal of Law, Government and Communication, 10(40), 41–50. https://doi.org/10.35631/IJLGC.1040003

Ni, Y. (2024). The Impact of Explainable AI on Customer Trust and Satisfaction in Banking. Journal of Information, Technology and Policy. https://doi.org/10.62836/jitp.v1i1.165

Omar, M. N., & Sa’ad, A. A. (2024). Exploring the Potential of Artificial Neural Network in Sharīʿah Decision-making for Digital Banking: A Literature Review. TAFHIM: IKIM Journal of Islam and the Contemporary World, 17(2), 105–130. https://doi.org/10.56389/tafhim.vol17no2.5

Papagiannidis, E., Mikalef, P., & Conboy, K. (2025). Responsible artificial intelligence governance: A review and research framework. The Journal of Strategic Information Systems, 34(2), 101885. https://doi.org/10.1016/j.jsis.2024.101885

Sain, Z., & Adinugraha, H. H. (2025). Artificial Intelligence and Islamic Finance: Enhancing Sharia Compliance and Social Impact in Banking 4.0. Journal of Business Management and Islamic Banking, 025–046. https://doi.org/10.14421/jbmib.2025.0401-03

Shalhoob, H. (2025). The role of AI in enhancing shariah compliance: Efficiency and transparency in Islamic finance. Journal of Infrastructure Policy and Development, 9(1), 11239. https://doi.org/10.24294/jipd11239

Srairi, S. (2019). Transparency and bank risk-taking in GCC Islamic banking. Borsa Istanbul Review, 19, S64–S74. https://doi.org/10.1016/j.bir.2019.02.001

Sudirman, S., Sutiah, S., & Supriyono, S. (2025). Islamic Law in the Era of Artificial Intelligence: A Systematic Literature Review. International Journal of Engineering, Science and Information Technology, 5(4), 321–328. https://doi.org/10.52088/ijesty.v5i4.1072

Suhartanto, D., Setiawan, S., & Safitri, F. M. (2026). AI-enabled brand experience and Shariah compliance in Islamic digital banking. Journal of Islamic Marketing, 1–20. https://doi.org/10.1108/JIMA-07-2025-0411

Sulistiyo, A. B., Wardayati, S. M., Hidayatullah, A., & Riesky, S. S. N. (2020). Effect of Islamic corporate governance on customer trust: empirical study on Islamic bank. Asian Journal of Islamic Management (AJIM), 2(1), 12–24. https://doi.org/10.20885/ajim.vol2.iss1.art2

Tait, J., Brown, A., Lalinde, I. C., Barlow, D., Chiles, M., & Mason, P. (2021). Responsible innovation: Its role in an era of technological and regulatory transformation. Engineering Biology, 5(1), 2–9. https://doi.org/10.1049/enb2.12005

Tanwar, V., & Ramachandran, M. (2025). Digital Trust and The Use Of Fintech Banking Services Evidence From Women Entrepreneurs In Namakkal District. International Journal of Engineering Technologies and Management Research, 12(2). https://doi.org/10.29121/ijetmr.v12.i2.2025.1720

Wahab, A., Mahdiya, I., Muhammad, K., & Al Banjari, A. (2025). Digital Shariah Governance and the Future of Islamic Finance: A Framework for AI-Driven Shariah Compliance in a Global Regulatory Environment. International Journal of Islamic Finance, 3(2), 19–31. https://doi.org/10.14421/IJIF.V3I2.2777

Yacoubian Leandro Jorge. (2025). Trust in digital banking: a thematic review of drivers, barriers and emerging evidence in developing countries. World Journal of Advanced Research and Reviews, 26(2), 4141–4147. https://doi.org/10.30574/wjarr.2025.26.2.2140

Yeo, W. J., Van Der Heever, W., Mao, R., Cambria, E., Satapathy, R., & Mengaldo, G. (2025). A comprehensive review on financial explainable AI. Artificial Intelligence Review, 58(6), 189. https://doi.org/10.1007/s10462-024-11077-7

Zerilli, J., Bhatt, U., & Weller, A. (2022). How transparency modulates trust in artificial intelligence. Patterns, 3(4), 100455. https://doi.org/10.1016/j.patter.2022.100455

Zhu, H., Vigren, O., & Söderberg, I.-L. (2024). Implementing artificial intelligence empowered financial advisory services: A literature review and critical research agenda. Journal of Business Research, 174, 114494. https://doi.org/10.1016/j.jbusres.2023.114494