The Fiqh of Algorithms: AI-Driven Dynamic Pricing in Shariah Business Perspectives

Abstract

This study examines the intersection of Artificial Intelligence (AI)-driven dynamic pricing and Islamic commercial jurisprudence, addressing a significant literature gap regarding the ethical deployment of automated pricing algorithms. The primary objective is to evaluate how real-time algorithmic price adjustments align or conflict with Shariah business ethics and to propose a normative governance framework. Using a conceptual qualitative research design, the study synthesizes contemporary digital economy literature with classical Islamic jurisprudential principles such as adl (justice), bayān (clarity), and maṣlaḥah (public interest). The findings reveal that while AI pricing enhances market efficiency, it introduces critical ethical risks, including "black-box" opacity that may constitute gharar (uncertainty), exploitative margin extraction, and discriminatory personalization. To mitigate these risks, the study proposes the Shariah Algorithmic Pricing Governance Model (SAPGM), which is built upon four essential pillars: algorithmic transparency, fair margin constraints (ribh al-maʿrūf), anti-discrimination safeguards, and independent Shariah algorithmic audits. By embedding maqāṣid al-sharīʿah into the governance architecture, this model demonstrates that technological innovation can be harmonized with Islamic moral accountability. This research contributes a theoretical bridge between fiqh al-muʿāmalāt and algorithmic governance, offering practical guidance for the evolving Islamic fintech ecosystem.