Is the Islamic Financial Services Industry Ready to Embrace Digital Employees?

For over two decades, I’ve watched the Islamic financial services industry evolve — from dusty ledgers in local banks in Karachi and Kuala Lumpur, to billion-dollar sukuk issuances lighting up Bloomberg terminals in London and Dubai. But nothing, and I mean nothing, has been as disruptive, or as quietly revolutionary, as the rise of what the banking world has begun calling “digital employees.”

You may raise your eyebrow — digital employees? Not just software tools or robotic process automation, but intelligent systems working shoulder-to-shoulder with human teams? Yet that’s exactly what’s happening. And it’s no longer just confined to Silicon Valley’s darling startups or innovation labs buried in the bowels of American tech giants. Today, some of the world’s most traditional financial institutions are giving digital workers company email accounts, login credentials, even assigning them human managers.

At Bank of New York Mellon, one of the oldest and most conservative names in banking, they’ve already developed digital personas that scan for code vulnerabilities or validate payment instructions — with precision, consistency, and no coffee breaks required. Each of these personas operates within a narrowly defined scope, ensuring both security and efficiency. One BNY executive even hinted that within six months, these non-human employees could be collaborating with human staff through Microsoft Teams or email, resolving issues autonomously, or flagging decisions for approval by their human managers.

Meanwhile, JPMorgan Chase is treading more cautiously — not giving AI systems full system access yet, but seriously thinking about how these entities should be integrated. How should they be managed? How much autonomy is too much? Where do they sit in the organizational hierarchy, if anywhere?

This may sound like the makings of a sci-fi novel, but it is very much real. And the broader financial industry is sprinting forward. That brings me to the world I know best — Islamic finance.

Related: How To Create An AI Agent To Grow Your Halal Business?

Islamic banks and financial institutions are not strangers to technological progress. But we have always moved with a particular kind of deliberation — ensuring that every step is in harmony with the ethical and legal principles of Shariah. We cannot, and should not, adopt every shiny tool for the sake of speed or scale. But we also cannot afford to remain bystanders while the rest of the financial world races ahead.

The question I find myself asking — and I know many of you reading this share it — is this:

Can Islamic financial institutions embrace these new digital colleagues while remaining true to our values?

The early signs suggest the door is already half-open.

In the UAE, Dubai Islamic Bank has deployed smart chat assistants that answer customer queries in real time, mimicking the flow of a human conversation and resolving requests with a level of accuracy that would have been unthinkable a decade ago. It’s not just about responding to FAQs — the system is already trained to route queries to the right department, assist with document collection, and support loan applications.

Al Rajhi Bank, a juggernaut in Saudi Arabia’s Islamic banking landscape, has taken bold steps in predictive analytics — using intelligent systems to detect fraud patterns, evaluate customer creditworthiness, and personalize financial product offerings. Their internal systems are increasingly data-driven, with machine logic analyzing customer behavior and generating reports that inform real decisions.

And then there’s Maybank Islamic in Malaysia — quietly pushing the frontier by using intelligent systems for early-stage Shariah screening of investments. While human scholars still have the final say, these tools are accelerating the process and filtering out obviously non-compliant proposals, allowing scholars to focus on the more nuanced ones.

The pattern is clear: Islamic banks are experimenting — cautiously but intentionally. And that’s a good thing.

But the stakes are high. We’re not just talking about automating customer service or back-office processes. What happens when these digital colleagues start handling tasks that touch directly on ethical judgments? If a digital persona is assigned to monitor contracts for compliance, who takes responsibility if it misses a riba clause or fails to detect excessive gharar?

Shariah isn’t merely a checklist. It’s a living, breathing framework of ethics, risk, social welfare, and spiritual integrity. Any digital system that plays a role in financial decision-making must understand not just the letter, but the spirit of Islamic law. That’s where things get complicated.

Yet, I believe the solution lies not in fear, but in collaboration.

We need to see Islamic scholars and technologists sitting together in the same room, co-developing intelligent systems that are deeply embedded with Islamic legal reasoning. Not just compliance tools that catch keywords, but systems that reflect the logic and hierarchy of Islamic jurisprudence. We need platforms that can adapt to the nuances between the four major Sunni schools of thought, and even variations between national fatwa councils. This is not a pipe dream. With the right intent and investment, it is entirely possible.

One shining example I’ve come across recently is from the world of zakat.

Some fintech firms — like Wahed Invest and Finterra — are now building platforms that automate zakat calculation based on real-time financial data. These tools calculate nisab thresholds, deduct liabilities, and recommend the exact zakat due, customized to local standards. One Malaysian firm is even piloting a system that automates the disbursement of zakat to verified recipients — ensuring end-to-end traceability and reducing leakages.

Imagine if such systems were deployed at scale by Islamic banks — transforming how we manage one of the core pillars of our faith. And imagine if digital colleagues could flag anomalies in zakat payments or waqf fund usage, ensuring the entire process remained transparent and fair.

Of course, all of this will mean rethinking governance.

We will need new fatwas, perhaps even a new framework of fiqh for intelligent systems. Who certifies a digital employee’s actions? Who bears liability? How do we ensure that the system is not making moral decisions without human oversight?

It also means investing in a new kind of talent — people who understand both the logic of code and the soul of Shariah. Scholars who are fluent in data ethics, and engineers who understand jurisprudence.

Some readers may worry that this is a step too far — that digital employees may one day replace human ones. I don’t believe that’s the case. In fact, what’s more likely is that these systems will amplify our human capacity — freeing up scholars from repetitive tasks, helping bankers make better decisions, and allowing institutions to serve clients more efficiently and equitably.

The goal is not to replace Islamic finance’s human heart — but to strengthen it.

So, is the Islamic financial services industry ready?

We may not be fully there yet, but we are certainly standing at the edge of a very significant transformation. The old dichotomy between tradition and technology no longer serves us. It is time to build a new synthesis — one that honors our heritage while embracing the tools that can carry it forward into the future.

The world is changing. Let us not be the last to walk through the door.

Let us lead — with wisdom, with caution, and above all, with integrity.

FAQs

Q: Can digital employees make decisions that require religious interpretation?
A: No, such decisions still require oversight by qualified Shariah scholars. AI can assist, but not replace human judgment in religious matters.

Q: Are there Islamic fintech startups using AI?
A: Yes. Startups like Wahed, Insha, and Finterra are exploring AI in wealth management, zakat, and halal investing.

Q: Is AI halal?
A: AI is a tool. Its halal or haram status depends on how it is used. Ethical guidelines and religious oversight are essential.