International Journal of Academic Research in Business and Social Sciences

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Artificial Intelligence and the Enhancement of Digital Governance of Islamic Awqaf

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The Islamic endowment (waqf) sector is experiencing a significant transformation driven by advances in artificial intelligence and digital governance, shifting waqf management from traditional manual practices to data driven and intelligent systems. As a key pillar of the social economy, waqf plays an essential role in supporting charitable, educational, and cultural activities. However, conventional management approaches have faced challenges such as weak oversight, limited transparency, and difficulty in assessing financial and social performance, which has undermined sustainability and strategic planning. This study examines the role of artificial intelligence in enhancing the governance of digital endowments through the use of machine learning, deep learning, natural language processing, and neural networks to analyze large datasets related to waqf assets, returns, and utilization. The findings indicate that AI enables real time monitoring of financial flows, evaluation of project performance, prediction of future needs, and early identification of risks and inefficiencies, thereby supporting informed and sustainable decision making. The research also highlights the social dimension of AI, as digital platforms facilitate community participation, beneficiary engagement, and transparent monitoring of endowment performance, which strengthens trust and promotes equitable resource distribution. In addition, intelligent data analysis helps identify high impact projects, optimize resource allocation, and develop innovative Sharia compliant investment strategies. Despite these benefits, the study identifies challenges related to technological infrastructure, data privacy, human capacity building, and Sharia compliance. It emphasizes the need for clear regulatory and ethical frameworks. Finally, the research points to future prospects through integrating AI with blockchain, predictive analytics, and the Internet of Things to create smart endowment systems that enhance transparency, sustainability, and social impact for future generations.
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