Integrating AI Technologies in Interest-Free Finance: Advancing Sector Capabilities through Innovative Model Proposals

Abstract

This study explores the intersection of artificial intelligence (AI) technologies and interest-free finance, delving into the transformative potential of financial technology advancements in this sector. The aim establishes a theoretical framework fora financial interaction model grounded in machine learning, a subset of AI technologies. This framework underpins the development of novel digital contract methods adhering to the principles of interest-free finance. Central to this investigation is conceptualising and evaluating the "Benefit Sharing Model," which utilizes machine-learning techniques. This model serves as the foundation for eight distinct digital contract proposals, offering innovative solutions for the operational challengesin the interest-free finance sector. These digital models facilitate various financial interactions, such as deposit collection and financing processes, for users within the interest-free financial system. A significant study component involves a comparative analysis of these smart contract proposals, envisioned as blockchain-based, smart, interest-free financial contracts, against existing models in the field. This comparison demonstrates the technical feasibility and applicability of these proposals andhighlights their uniqueness and potential advantages. This research contributes to the diversification and expansion of interest-free financial technology applications by introducing smart contract models and exploring their practical implications. It underscores the possibilities for broadening the scope and enhancing the growth of the interest-free finance sector, marking a significant step towards integrating cutting-edge AI technologies into ethical and interest-free financial practices.