Artificial intelligence precision: Understanding Islamic profit-and-loss sharing contracts for early learners
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Abstract
As artificial intelligence increasingly serves as an educational shortcut for learners navigating complex subjects, this study evaluates whether the practical efficacy of these platforms aligns with current expectations. Specifically, we examine the capacity of ChatGPT to accurately explicate Mudarabah and Musharakah, the foundational profit and loss sharing contracts in Islamic finance. To assess this systematically, the core knowledge of these contracts was categorised into five critical dimensions: general comprehension, legal basis, specific terms and conditions, contract typologies, and practical industry applications. In January 2024, structured prompts were submitted to the free public version of ChatGPT, specifically GPT version 3.5, and the generated responses were rigorously evaluated on a scale from 0 to 5. These outputs were benchmarked against the standardised reference texts used for certifying Shari’ah supervisors. The results reveal significant limitations in the factual accuracy of the model. Most notably, the terms and conditions dimension, a critical component of Islamic financial compliance, yielded a validity score of less than 2. With an overall average validity score of just 2.53, the findings indicate that ChatGPT is currently too unreliable to serve as an independent foundational learning tool in this domain. Ultimately, while artificial intelligence offers compelling educational potential, this study underscores the necessity of exercising strict caution when relying on autonomous tools to navigate highly specialised, deeply nuanced intersections of religion and finance.
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