An Islamic Perspective on AI Ethics: A Case Study of Wahed Invest Robo Advisory

Mamoun Benmamoun; Rana Sobh

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An Islamic Perspective on AI Ethics: A Case Study of Wahed Invest Robo Advisory

Mamoun Benmamoun

Richard A. Chaifetz School of Business, Saint Louis University, United States

Rana Sobh

College of Business and Economics, Qatar University, Doha, Qatar

Volume 21: 2024 pp. 231-244: ABSTRACT

This case study examines the confluence of Islamic finance and AI ethics in the rapidly growing Robo-Advisory sector, focusing on Wahed Invest LLC (Wahed). As a frontrunner in providing Islamic-compliant financial solutions, Wahed Investments seeks to align its offerings with core Islamic ethical principles. However, recent violations of the Securities and Exchange Commission (SEC) regulations, including misleading clients and insufficient disclosures, have highlighted the urgent need to strictly comply with both Islamic ethical standards and regulatory requirements to rebuild trust and maintain its status as a Shari’ah-compliant entity advisor.

Keywords: Islamic finance, AI ethics, Robo-Advisory, Wahed Investments, Shari'ah-compliant.