Will AI Be a Blessing or a Challenge for the Halal Economy?

Imagine this: A small Halal food business in Malaysia uses artificial intelligence (AI) to predict exactly how much chicken biryani they need to prepare each day, cutting down on waste and saving money. At the same time, a large Islamic bank in Dubai leverages AI to optimize its Sharia-compliant investment portfolios, attracting millions in global funding. Both are benefiting from AI—but who’s really coming out ahead? While AI promises to revolutionize the Halal economy, it’s also creating winners and losers, often favoring those with resources and expertise while leaving smaller players struggling to keep up.

Related: Could Artificial Intelligence Be A Game-Changer in Halal Marketing?

The Promise of AI in the Halal Economy

When AI tools first started gaining attention a few years ago, many in the Muslim community were excited about their potential to level the playing field. For small Halal businesses and less-experienced workers, AI seemed like a golden opportunity. Take customer service, for example. Beginner agents at Halal e-commerce platforms saw their productivity skyrocket when using AI-powered chatbots. These tools helped them answer questions faster and more accurately, improving customer satisfaction without needing years of experience.

Similarly, entrepreneurs running modest fashion brands or Halal-certified food startups found AI-driven market analysis tools invaluable. Instead of hiring expensive consultants, they could now get insights into consumer trends with just a few clicks. Even students studying Islamic finance or Sharia-compliant banking used AI to draft reports and proposals, helping them produce high-quality work despite being new to the field.

At first glance, it seemed like AI was going to be the great equalizer—a tool that would empower grassroots Halal businesses and help close economic disparities within Muslim-majority countries. But as time has passed, a different picture has emerged.

Related: How To Grow Your Halal Business By Using Artificial Intelligence?

Why High Performers Are Pulling Ahead

While AI does offer opportunities, recent research suggests it disproportionately benefits those who are already skilled and experienced. Let’s break it down:

1. Experts Use AI More Effectively
   • In fields like Halal supply chain management or Islamic fintech, experts are better at leveraging AI tools strategically. For instance, top researchers working on sustainable Halal food packaging materials can use AI to predict which materials meet both Halal standards and environmental requirements. Their deep subject knowledge allows them to sift through AI-generated suggestions and pick the best ones.
   • On the flip side, less experienced professionals often struggle to interpret AI outputs. Without a solid understanding of Halal compliance or industry-specific regulations, they risk making costly mistakes—or worse, missing out on valuable opportunities altogether.
2. Automation Replaces Routine Tasks
   • Many jobs in the Halal economy involve repetitive tasks, such as verifying Halal certifications, processing Zakat payments, or managing inventory for Halal products. AI excels at automating these kinds of activities, reducing the need for human intervention.
   • For example, some Halal certification bodies now use AI to streamline document verification processes, cutting down on manual labor. While this increases efficiency, it also means fewer entry-level positions for workers who previously performed these tasks. What happens to them? They either adapt by learning new skills or risk being left behind.
3. New Opportunities Favor the Skilled
   • As AI takes over routine work, new roles are emerging—but these tend to require advanced skills. Engineers designing smart systems for Halal logistics, financial analysts optimizing Sharia-compliant investment portfolios, and designers creating innovative modest fashion collections all stand to benefit. However, not everyone has the training needed to step into these higher-level positions.
   • Junior employees in Halal businesses may find themselves stuck if they lack the creativity or technical know-how to adapt. For instance, an entrepreneur running a small Halal bakery might struggle to implement AI-driven marketing strategies unless they invest time in learning new technologies. Meanwhile, larger competitors with deeper pockets can easily adopt these tools, widening the gap even further.

Lessons from History: A Cautionary Tale

This dynamic isn’t unique to AI—it’s a pattern we’ve seen throughout history. When new tools emerged—whether it was machinery during the Industrial Revolution or computers in the late 20th century—they often widened social divides rather than closing them. Those with the resources and skills to adopt new technologies thrived, while others fell behind.

In the context of the Muslim world, this raises important questions. Will AI empower grassroots Halal businesses and help close economic disparities within Muslim-majority countries? Or will it reinforce existing inequalities by favoring large corporations and highly skilled individuals?

Consider Islamic finance. Large institutions with access to cutting-edge AI tools can optimize their operations, attract more clients, and expand globally. Smaller banks or cooperatives, however, may struggle to afford such technology, putting them at a competitive disadvantage. Similarly, in the Halal food industry, multinational companies leveraging AI for precision agriculture and automated quality control could outpace local producers unable to make similar investments.

What Does This Mean for Muslims?

So where does this leave us? While AI presents immense opportunities for the Halal economy, its benefits won’t be evenly distributed. To ensure that Muslim businesses and workers aren’t left behind, several steps must be taken:

1. Education and Training
   • We need to prioritize education in AI-related fields, including coding, data analysis, and ethical AI design. Programs tailored to the needs of the Halal economy—such as courses on AI applications in Islamic finance or Halal supply chains—could equip young Muslims with the skills they need to succeed. Imagine a future where every Muslim engineer or entrepreneur knows how to harness AI for good!
2. Affordable Access to Technology
   • Governments and private organizations should work together to provide affordable AI tools for small and medium-sized Halal businesses. Subsidies, grants, and shared platforms could help level the playing field. After all, why should only big players have access to game-changing technology?
3. Ethical Considerations
   • As AI becomes more integrated into Halal industries, ensuring compliance with Islamic principles will be crucial. For example, AI algorithms used in Islamic finance must adhere to Sharia guidelines, avoiding interest-based transactions or unethical investments. Scholars and technologists should collaborate to develop frameworks that align AI innovations with Islamic values. It’s not just about adopting technology; it’s about doing so responsibly.
4. Community Support
   • Mentorship programs connecting experienced professionals with newcomers could help bridge the gap between high performers and those still learning. By fostering collaboration, the Muslim community can ensure that everyone benefits from AI’s potential. Think of it as building a “Halal tech ecosystem” where no one gets left behind.

AI holds tremendous promise for the Halal economy, but it’s not a magic wand that will automatically solve all our problems. If managed wisely, it could enhance productivity, create new opportunities, and strengthen the global position of Halal businesses. But if left unchecked, it risks widening social and economic divides, leaving vulnerable groups further marginalized.

As Muslims navigate this rapidly changing landscape, we must approach AI with both ambition and caution. By investing in education, promoting ethical practices, and supporting inclusive growth, we can harness the power of AI to build a future that reflects the values of fairness, justice, and compassion central to Islam. After all, true progress isn’t measured by how much technology advances, but by how equitably its benefits are shared.

Think about it: What good is innovation if it only serves the privileged few? The Halal economy has always been about more than just profits—it’s about serving humanity while staying true to Islamic principles. As AI becomes an increasingly integral part of our lives, let’s ensure it uplifts everyone, not just those at the top. Whether you’re a business owner, a student, or a community leader, the choices we make today will shape the future of the Muslim world tomorrow. So, are you ready to embrace AI responsibly—and help others do the same?