Artificial Intelligence, Smart Contract and Islamic Finance - IslamicBanker.com

Accepted: January 16, 2018 Online Published: January 29, 2018 URL: https://doi.org/10.5539/ass.v14n2p145 Abstract This study examines the two important aspect of latest technology issues in Islamic finance that related to artificial intelligence (AI) and smart contract. AI refers to the ability of machines to understand, think, and learn in a similar way to human beings, indicating the possibility of using computers to simulate human intelligence. Smart contract is a computer code running on top of a block-chain containing a set of rules under which the parties to that smart contract agree to interact with each other. The main objectives of this article are to evaluate the operations of AI and smart contract, to make comparison between the operations of AI and smart contract. This article concludes that AI and smart contract will have a huge impact in future for Islamic Finance industry. Keywords: Artificial intelligence (AI), smart contract, digital banking, Islamic Finance 1. Preliminary Artificial Intelligence (AI) is the intelligence machines that have the ability to think. At this point, Artificial Intelligence (AI) offers rapid advancement in technology that mimic human intelligence. It's believed that intelligence machines associated with human thinking activities such as decision making and problem solving learning. Professor J. McCarthy (1955) established the concept of artificial intelligence (AI) during the first artificial intelligence conference at Dartmouth conferences in year 1956. This evolution confirm by Bogue (2014) who described Artificial intelligence (AI) as an intelligent agent system that takes actions in maximize the chances of success in a particular task. Pan (2016) revealed that AI becomes extremely critical when it applies to the technology. According to research report on artificial intelligence, this market is expected to be worth $16.06 billion by 2022. This market is expected to grow at 62.9% compound annual growth rate (CAGR) from 2016 to 2022 (Research and Markets, 2017). In 25th April 2016 to 27th May 2016, a special report under the subheading "Outlook on Artificial Intelligence in the Enterprise 2016" have been produce by Narrative Science in collaboration with National Business Research Institute. This report deployed an online survey with a total of 235 respondents.