Utilization of Large Language Models (LLMs) in Designing Financial Management for Rural Private Madrasah in Indonesia

This study investigates the utilization of Large Language Models (LLMs) in designing financial management systems for rural private madrasah in Indonesia. Rural private madrasah faces unique financial challenges, including limited government funding, dependence on community contributions, and lack of professional financial management expertise. This research employs a mixed-method approach combining Systematic Literature Review (SLR) and a single qualitative case study for preparation of simulation at Madrasah Ibtidaiyah Ulul Albab, Prayungan Village, Sawoo District, Ponorogo Regency, East Java. The SLR analyzed 45 relevant articles from 2020-2024 databases including Scopus, Web of Science, and Google Scholar. The case study involved in-depth interviews with 8 key informants, document analysis, and participatory observation over six months. Findings reveal that LLMs can significantly contribute to financial management design through budget planning optimization, financial report generation, cash flow analysis, and strategic fundraising recommendations. The integration of LLMs increased financial planning efficiency by approximately 60% and reduced administrative workload by 45%. However, challenges persist regarding digital literacy, infrastructure limitations, and contextual understanding of local socio-economic conditions. This study proposes a conceptual framework for LLM-assisted financial management specifically tailored for rural private madrasah, emphasizing the synergy between artificial intelligence capabilities and human contextual judgment.