This chapter aims to evaluate the applications and significance of Artificial Intelligence (AI) in the context of Muslim societies, most precisely within the Islamic finance sector. Theoretically, Islamic finance, distinct from conventional financial systems, operates on principles of Sharia law which prohibit interest (riba), promote risk-sharing and asset-backed financing, and emphasize ethical investments, thereby fostering economic justice and stability. This chapter’s purpose is to highlight AI’s distinct contributions to Islamic finance beyond its conventional applications in mainstream finance, such as service cost reduction, transparency, and speed in delivery. The chapter concludes that the Islamic finance industry has embraced AI technology. However, the review of the implemented AI technologies within the Islamic finance sector and how this technology is used showed that, overall, Islamic financial institutions use this technology the same way traditional financial institutions use it. This requires more efforts from regulation authorities and industry practitioners simultaneously to adapt the use of AI technology beyond its conventional use. AI technology may fuel the current uptrend of Islamic finance growth if implemented beyond its conventional use.