Shariah Liability for Artificial Intelligence Errors in Concluding Islamic Financial Contracts

This study examines a contemporary fiqh issue concerning the determination of Shariah liability for artificial intelligence errors in the conclusion of Islamic financial contracts within the banking and financial sectors. The research problem lies in the absence of a conclusive fiqh characterization of the nature of the role played by artificial intelligence technologies in contractual processes: whether they should be regarded merely as rigid technical tools for execution, or whether their autonomous actions may be analogically characterized in light of the rules of wakālah (agency) and niyābah (representation), and the implications of such characterization for determining the party responsible for ḍamān when technical errors or unauthorized actions occur. The study adopts inductive, analytical, and comparative approaches by examining the fiqh rules governing contracts, ḍamān, causation, and tafrīṭ (negligence), and comparing them with contemporary technological functions. The study concludes, among other findings, that artificial intelligence does not possess independent Shariah legal capacity or a separate financial liability, and that its actions remain governed by the nature of the authorities granted to it and the human inputs involved.

It further establishes that the machine cannot be attributed independent fiqh reasoning. The study also concludes that Shariah liability and the rules of ḍamān may be distributed among the programming entity, the financial institution using the system, and the human supervisor, according to the relevant criteria of negligence, tafrīṭ, or errors in system design and data. The study recommends the development of regulatory frameworks and robust Shariah guidelines, together with strengthening qualified human oversight to ensure the integrity of financial transactions and compliance with Shariah requirements.