Affiliation:
1. RATM, India
2. Business School, NSB Academy, Bangalore, India
3. St. John's University, USA
4. IIUM Gombak, Malaysia
Abstract
This chapter explores the transformative impact of artificial intelligence (AI) and machine learning (ML) technologies on the Islamic Capital Market (ICM). As the global financial landscape evolves, the ICM is no exception, facing challenges and opportunities alike. AI and ML have emerged as pivotal tools for enhancing efficiency, mitigating risks, and fostering innovation within Islamic finance. The chapter begins by providing a comprehensive overview of the Islamic financial principles and the unique features of the ICM. It then delves into the key areas where AI and ML are being applied, including Shariah-compliant investment screening, risk management, asset allocation, trading strategies, and customer services. The study scrutinizes the implications of these technologies on financial inclusion, ethical finance, and regulatory compliance in the ICM.
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