Artificial Intelligence Adoption and Shariah Compliance in Islamic Banking: Impact on Customer Trust and Satisfaction

Abstract

This study explores how using Artificial Intelligence (AI) and following Islamic financial rules (Shariah compliance) affect customer trust and satisfaction in Islamic banks. Design/Methodology: We surveyed 512 Islamic bank customers and used advanced statistical analysis to see how AI use, religious compliance, trust, and satisfaction are connected. Findings: The results demonstrate that AI adoption significantly and positively impacts both customer trust and satisfaction. Crucially, perceived Shariah compliance acts as a vital positive moderator, amplifying the impact of AI adoption on trust and satisfaction by mitigating the "black box" anxieties associated with algorithmic opacity. Furthermore, customer trust significantly mediates the relationship between AI adoption and satisfaction. The IPMA reveals that while Islamic banks perform well in AI deployment and baseline Shariah compliance, customer trust remains the highest-priority bottleneck requiring managerial intervention to maximize overall satisfaction. Practical Implications: Islamic banks should focus on building trust in their technology, not just adding new AI features. They can do this by making AI decisions easy for customers to understand and clearly showing that Islamic scholars oversee these digital tools.