Islamic banking is on the cusp of a significant technological shift driven by artificial intelligence (AI) and data analytics, according to a new report from the General Council for Islamic Banks and Financial Institutions (Cibafi).
The Bahrain-based global body unveiled its 10th Global Islamic Bankers’ Survey (GIBS) 2025 Report during a recent webinar, emphasising AI’s transformative influence on operations and services across the sector.
The GIBS 2025 Report, which draws insights from 105 executives across 29 countries, explores AI’s expanding role in enhancing Islamic banking operations, service delivery and risk management.
Cibafi secretary-general Dr Abdelilah Belatik noted, “Marking the 10th anniversary of the GIBS initiative, this year’s findings reflect an industry on the brink of a technological shift. While AI adoption is still early, its strategic value is increasingly recognised.” He added that CIBAFI aims to support this transition through research and capacity building.
In a related development, Ivey Business School director of business development Jenni Denniston announced a forthcoming joint executive programme with Cibafi. This initiative will equip executive managers with strategic leadership skills in AI and digital transformation within Islamic banking.
Cibafi project manager for research and regulatory affairs Dr Muhammad Bilal shared GIBS insights, highlighting AI’s growing strategic importance despite limited adoption due to high costs, lack of expertise, and concerns over cybersecurity and credit risks.
The report reveals a distinct shift towards digital transformation within the Islamic banking sector, despite varying stages of adoption. While only 38 per cent of banks are currently integrating AI with data analytics and a significant 87pc still depend on traditional tools, a striking 75pc already consider AI a strategic priority for their future operations.
The webinar also featured expert discussions on the evolving digital landscape.
Concurrently with the webinar, Cibafi launched the ‘Digital Momentum Guide: Impact on Islamic Banks and Guidelines for Adaptability’. The guide frames digital transformation as a strategic imperative, emphasising agility, innovation, and Sharia-compliance for Islamic financial institutions.
It identifies AI, cloud computing, Big Data analytics, and DLT as pivotal technologies for enhancing financial inclusion and operational efficiency. The guide further stresses the importance of robust Sharia compliance, governance, risk management, and compliance frameworks, particularly concerning emerging areas like crypto finance.
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