AI Adoption in Islamic Banking in Morocco: Challenges and Prospects

Abstract

The convergence of Islamic finance and digital transformation presents new opportunities and challenges for the banking sector. This study examines the current state of Artificial Intelligence (AI) adoption in Moroccan Islamic banks, highlighting both obstacles and future prospects. Using a qualitative approach, the research combines a review of existing literature with semi-structured interviews conducted with experts from Islamic banks, financial institutions, and the AI sector in Morocco. Findings reveal that Moroccan Islamic banks have not yet integrated AI into their operations, relying instead on limited FinTech applications such as mobile banking and fraud detection. This slow adoption is primarily attributed to insufficient regulatory readiness, weak technological infrastructure, modest investment levels, and a shortage of skilled professionals. Nevertheless, the study underscores the significant potential of AI to enhance cost efficiency, strengthen decision-making, improve fraud detection, and expand the market share of Islamic banks. By addressing structural and human-capital barriers, Moroccan Islamic banks could leverage AI not only to modernize their services but also to improve competitiveness within national and international markets. This research provides one of the first empirical insights into AI adoption in Moroccan Islamic finance, offering a foundation for policymakers, practitioners, and scholars seeking to align innovation with Shariah-compliant principles.