Artificial Intelligence Adoption and Strategic Decision-Making in Islamic Banks

This study explores the relationship between Artificial Intelligence (AIA) adoption and strategic decision-making (SDM) within Islamic banks, emphasizing the moderating role of religious orientation (RO). As AI continues to revolutionize the financial sector, its integration within Islamic banking raises critical questions regarding ethical alignment and strategic implementation. A quantitative research design was employed, using Structural Equation Modeling (SEM) through SmartPLS to analyze data collected from 211 employees of Islamic banks operating in Karachi, Pakistan. The findings reveal a significant positive impact of AI adoption on strategic decision-making, highlighting the potential of AI technologies to enhance organizational agility, efficiency, and foresight. Furthermore, the study confirms that religious orientation moderates this relationship, indicating that a strong adherence to Islamic values shapes how AI is perceived and utilized in strategic processes.