Halal products and services are becoming increasingly popular around the world, and the halal industry is growing rapidly. According to the State of the Global Islamic Economy Report 2020/21, the global halal industry’s value is estimated to be around $2.4 trillion, with the halal food market accounting for a significant portion of this figure.
As the halal industry continues to expand, the role of artificial intelligence (AI) in this sector is becoming increasingly important. AI can help the halal industry in several ways, from ensuring halal compliance to improving the efficiency and productivity of the halal supply chain.
The Halal Industry
The Halal industry includes products and services that are permissible according to Islamic law. It is not just limited to food but extends to cosmetics, pharmaceuticals, and finance. The Halal industry is growing at an unprecedented rate, and it is expected to reach $2.6 trillion by 2023.
Challenges Faced by the Halal Industry
The Halal industry faces several challenges, including:
Halal certification fraud is a significant challenge faced by the Halal industry. It is estimated that around 10-15% of Halal products are not genuine.
Inefficient Supply Chain
The Halal industry faces an inefficient supply chain, which makes it difficult to track the origin of the product.
Lack of Standardization
The lack of standardization in Halal certification is another significant challenge. Different countries have different Halal certification bodies, and they have different criteria for certification.
How AI Can Help the Halal Industry
AI can help the Halal industry overcome the challenges it faces. Here are some ways AI can help the global Halal industry address some of the challenges it currently faces.
One of the key benefits of AI in the halal industry is its ability to improve halal compliance. Halal certification is essential for Muslim consumers, and AI can help to ensure that products and services meet the required halal standards. For example, AI can be used to scan product labels and ingredient lists to identify any non-halal components. This can help to prevent inadvertent contamination of halal products and ensure that they meet the required standards.
Supply Chain Management
Another way in which AI can help the halal industry is by improving the efficiency and productivity of the halal supply chain. The halal supply chain can be complex and fragmented, with multiple stakeholders involved, including producers, processors, distributors, and retailers. AI can help to streamline this process by providing real-time information on inventory levels, production schedules, and shipping times. This can help to reduce waste, optimize inventory management, and improve overall efficiency.
AI is also being used in the halal meat industry to improve animal welfare. One such example is the use of AI-powered sensors to monitor the behavior of animals in slaughterhouses. This technology can help to detect any signs of distress or pain in the animals, enabling slaughterhouse workers to take action to address these issues.
AI can help in standardization by providing a common platform for Halal certification. It can analyze the criteria of different Halal certification bodies and provide a unified standard.
AI in Action
Several companies are already using AI to improve the Halal industry. Here are some examples:
There are already several examples of AI being used in the halal industry. One such example is the halal certification platform provided by HalalChain, which uses blockchain and AI technologies to ensure halal compliance. The platform provides a decentralized, secure, and transparent system for halal certification, enabling producers, processors, and retailers to verify the halal status of their products.
Purely Halal is a startup that uses AI to track the entire supply chain of Halal products. It provides real-time monitoring of the product from the source to the consumer.
Halal.AI is a startup that uses AI to provide a unified standard for Halal certification. It analyzes the criteria of different Halal certification bodies and provides a common platform for certification.
AI has the potential to play a significant role in the halal industry’s growth and development. From improving halal compliance to streamlining the supply chain, AI can help to drive innovation and efficiency in this sector. As the halal industry continues to expand, we can expect to see more examples of AI being used to improve the quality and safety of halal products and services.
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