Ethical Concerns in Artificial Intelligence (AI): The Role of RegTech and Islamic Finance

Artificial Intelligence (AI) is being applied across all areas of business and society. It is also one of the most researched topics during the current period. Banks and financial institutions nowadays are collecting large amounts of customer information which are imposed with AI and machine learning; however, the succeeding of all information remains unknown. This study attempts to identify the ethical issues in the application of Artificial intelligence and offers remedies from the Shariah principles. It also examines the role of Regulation technology (RegTech) in Islamic financial institutions. This study is exploratory in nature and used mainly primary data for the analysis purpose. The primary data is collected through the structured questionnaire obtained from the sharia scholars living in Gulf Cooperation Council (GCC) countries. The findings of the study suggest that the there is a significant relationship between ethical issues in AI implementation, role of RegTech and Islamic finance. The findings also suggest that the effective and intelligent utilization of RegTech and Islamic finance tools can reduce the ethical concern related to the AI implementation.