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Purpose This paper aims to develop a Shariah governance framework for the integration of generative artificial intelligence (AI) within Islamic financial institutions (IFIs). The framework is designed to ensure that AI applications are aligned with Islamic legal and ethical principles, thereby mitigating risks associated with impermissible practices. Design/methodology/approach Building on the foundational tenets of the AI lifecycle model, this study adopts a conceptual synthesis methodology to integrate classical fiqh, the maqasid al Shariah and contemporary AI governance literature in developing a conceptual framework for Shariah compliant generative AI. The framework embeds Islamic ethical imperatives at each stage, from data acquisition to deployment and monitoring. Findings The framework provides guidelines for IFIs to embed Shariah compliance into every stage of AI development and operation. It highlights the importance of dual governance mechanisms, featuring both a Shariah supervisory board and an AI governance committee, to ensure transparency, accountability and proactive risk mitigation. Originality/value This paper contributes by integrating Shariah principles with lifecycle-based generative AI governance in IFIs. It proposes a conceptual governance framework, offering a structured reference point for the responsible deployment of generative AI in Islamic finance.
Zafar et al. (Wed,) studied this question.