Employing Artificial Intelligence Technologies as an Approach to Improving Financial Performance in Libyan Islamic Banks (A Field Study on the General Administrations of Islamic Banks in Libya)
DOI:
https://doi.org/10.37375/esj.v9i1.4000Keywords:
Artificial intelligence technologies, Financial risk management, Islamic banks, Liquidity, ProfitabilityAbstract
This study aimed to examine the role of artificial intelligence technologies in improving the financial performance of Libyan Islamic banks. To answer the research questions and test the hypotheses, the descriptive-analytical approach was adopted. The study employed a purposive sampling method, selecting a sample of department managers, their deputies, and heads of sections in the general administrations of Libyan Islamic banks operating in Tripoli, namely: Bank of Andalus, Al Yaqeen Bank, Libyan Islamic Bank, and Al Nuran Bank. A total of 82 questionnaires were used in the study. The research instrument consisted of three main sections, and data were collected using a five-point Likert scale. The data were analyzed using SPSS software to test the validity of the study model and its hypotheses. The results indicated that artificial intelligence technologies contribute to improving the profitability of Islamic banks, enhancing liquidity levels, and supporting financial risk management. Based on these findings, the study recommends several measures, most notably the adoption of an integrated institutional digital transformation strategy through the implementation of clear strategic plans within Islamic banks. It also recommends integrating artificial intelligence technologies into their operational systems to enhance operational efficiency, improve the quality of financial decision-making, and maximize returns. Furthermore, the study suggests developing intelligent liquidity management systems based on advanced analytical models for forecasting cash flows and managing assets and liabilities, thereby strengthening the banks’ ability to meet financial obligations and enhance financial stability
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