This chapter explores the transformative role of artificial intelligence (AI) in enhancing the collection and distribution of zakat funds. It delves into the utilization of AI for streamlining collection processes, accurate identification of eligible recipients, and ensuring effective fund allocation. Various AI applications are explored, such as predictive analytics, chatbots, and real-time monitoring, highlighting their impact on improving efficiency, transparency, and donor engagement. The challenges and ethical considerations inherent in integrating AI into religious and social welfare contracts are explored. The exploration concludes by emphasizing AI's potentila to revolutionize zakat management, aligning, technological advancements with the core principles of Islamic social welfare.

Artificial intelligence is transforming the world in every way of life and zakat institutions must expand the operational management leveraging on advance technology development. The objective of this study is to provide potential applications of artificial intelligence in enhancing the distribution operational management of zakat institutions. The research has used Lembaga Zakat Selangor as a case study. This paper deliberates on the current technology development in zakat institution as well as the impediment towards the adoption of the advance technology and propose potential application of artificial intelligence to the zakat institutions. The results identify that Lembaga Zakat Selangor is venturing into the adoption of artificial intelligence in their operational distribution management however still at the early stages. Hence, the suggestion of the implementation of artificial intelligence from the study is aligned with Lembaga Zakat Selangor to resolve the key pain points in their Digitalization Journey and with hope this research could be benefit for the rest of the zakat institutions and solution provider to further evolve the social finance industry with advance technology development.