ALGORITHMIC IJTIHAD: Artificial Intelligence, Robo Advisors, and the Digital Transformation of Shariah Compliance in Southeast Asian Capital Markets

Algorithmic Ijtihad: Artificial Intelligence, Robo-Advisors, and the Digital Transformation of Shariah Compliance in Southeast Asian Capital Markets explores a profound transformation in contemporary Islamic finance: the growing role of artificial intelligence and algorithmic systems in determining Shariah
compliance within capital markets. The book illustrates how digital technologies are reshaping the classical concept of ijtihad, altering long-established patterns of religious interpretation, economic decision-making, and institutional authority across Southeast Asia’s Muslim societies. The narrative traces the evolution of Shariah compliance from manual fatwa-based assessments to increasingly sophisticated automated screening systems. It explains how Islamic legal principles are translated into computational logic through quantitative criteria, language-based assessments, and robo-advisory platforms that guide investment decisions. These
developments have expanded access to Shariah-compliant financial products for wider segments of society, while simultaneously introducing new challenges related to digital literacy, transparency, and inclusion.
At the core of the book lies a reflection on authority and ethics in an era where algorithms mediate religious practice. Differences in generational trust toward technology, diverse regulatory approaches in Malaysia, Indonesia, and Singapore, and unresolved theological questions surrounding machine-assisted ijtihad are examined in a clear and accessible manner. By situating Southeast Asia at the center of these developments, the book presents the region as a key arena where technology, faith, and finance intersect in shaping the future of Islamic capital markets.