Artificial Intelligence In Islamic Banking: A Sem-Pls Analysis Of The Mediating Role Of Islamic Governance And Customer Trust In Achieving Maqashid Al-Shariah In Riau Province

Abstract

Digital transformation through artificial intelligence (AI) offers opportunities for Islamic banking to improve the efficiency, accuracy, quality, and personalization of its services. However, the use of AI must be supported by Sharia governance and customer trust to ensure that technological transformation remains aligned with Sharia principles and the fulfillment of Maqashid al-Shariah. This study aims to analyze the effect of AI-Based Islamic Banking Capabilities on perceptions of Sharia governance and customer trust, as well as their impact on perceptions of the realization of Maqashid al-Shariah, including testing the mediating and chain-mediating roles among the variables. The study employs an explanatory quantitative approach using the Partial Least Squares Structural Equation Modeling (PLS-SEM) technique. Primary data were collected through a questionnaire distributed to 350 respondents who are Islamic banking customers in Riau Province, using 24 reflective indicators on a 1–7 Likert scale. The results show that AI capabilities have a positive and significant effect on Perceptions of Sharia Governance (β=0.483; p<0.001) and Customer Trust (β=0.272; p<0.001). Perceptions of Sharia Governance have a positive and significant effect on Customer Trust (β=0.490; p<0.001) and Perception of the Realization of Maqashid al-Shariah (β=0.402; p<0.001), while Customer Trust has a positive and significant effect on Perception of the Realization of Maqashid al-Shariah (β=0.329; p<0.001). The chain mediation model involving AI–Sharia Governance–Customer Trust–Maqashid al-Shariah was also found to be significant (β=0.078; t=4.964). The findings confirm that the effectiveness of AI in supporting Maqashid al-Shariah is reinforced through sound Sharia governance and customer trust.