This research investigates the integration of Artificial Intelligence (AI) applications and
automation within the lending documentation processes of both Islamic and
conventional corporate lending in the United Kingdom. Drawing on a multidimensional
theoretical framework that integrates the Technology Acceptance Model, Diffusion of
Innovations, Organisational Change Theory, Institutional Theory, and Constructivist
Grounded Theory, the research explores the technological, organisational, regulatory,
and interpretive dimensions of AI adoption. A qualitative approach was employed,
incorporating semi-structured interviews with banking professionals and legal
practitioners who were selected for their extensive experience in lending
documentation workflows, providing both direct and prospective insights into the
integration of AI-enabled systems within the sector. The findings reveal that while AI
improves efficiency, accuracy, and compliance traceability, its implementation remains
constrained by regulatory uncertainty, skill gaps, and ethical concerns, particularly in
Islamic banking, where Sharia compliance introduces additional governance layers.
Crucially, the study identifies a structural ‘compliance lag,’ where the rapid
advancement of technology significantly outpaces the evolutionary speed of Sharia
governance and conventional regulatory frameworks. The analysis indicates that AI
adoption is not purely a technological decision, but a socially negotiated process
shaped by institutional legitimacy and organisational learning. The study contributes
theoretical insight by synthesising technological and institutional models with
interpretive analysis, offering a holistic understanding of AI-driven transformation in
dual banking systems. It identifies a ‘complexity wall’ in risk management
documentation that limits purely algorithmic processing and suggests a transition
toward ‘agile compliance’ models. Finally, it provides practical implications for banks
seeking to integrate AI responsibly within complex regulatory and ethical
environments. Overall, the study argues that AI adoption in this setting is shaped less
by the technical capability of the tools than by the governance and legitimacy
structures around them, and this is most visible in the contrast between conventional
and Islamic banking.
- The Application of artificial intelligence and automation in Islamic and conventional lending documentation in UK corporate banking
- Taher Moustafa Ayman Saad
- University of Greater Manchester; Doctor of Philosophy (PHD)
- Doctor of Philosophy (PHD), University of Greater Manchester
- 499
- 9988420708841
- Centre for Islamic Finance
- Dissertation