THE ROLE OF ARTIFICIAL INTELLIGENCE IN THE HALAL INDUSTRY

NOTE: This article is derived from the author’s video presentation as a speaker at the Thailand Halal Assembly (THA) 2024.

[Artificial Intelligence (AI) has emerged as a transformative tool, offering solutions to meet the sophisticated demands of today’s global consumers. By leveraging AI-driven technology, halal industry stakeholders can optimize supply chains, ensure compliance with halal certification standards, and enhance customer experiences, thus solidifying their position in an increasingly competitive market…… ] by Syed Atiq ul Hassan

The halal industry is one of the fastest-growing and most dynamic global markets, catering to the needs of approximately 1.9 billion Muslims worldwide, as well as an increasing number of non-Muslims drawn to ethically sourced and health-conscious lifestyle choices. Beyond its religious significance, the halal market resonates with consumers who prioritize ethical values, sustainability, and wellness.

This thriving industry is experiencing exponential growth across diverse sectors, including food, cosmetics, pharmaceuticals, fashion and finance. To maintain a competitive edge against non-halal industries and address the evolving expectations of modern consumers, it is essential for halal industry operators to embrace and integrate cutting-edge technologies. Such advancements not only enhance operational efficiency and products marketing but also empower the industry to innovate and consistently deliver high-quality products and services that align with global trends.

In this context, Artificial Intelligence (AI) has emerged as a transformative tool, offering solutions to meet the sophisticated demands of today’s global consumers. By leveraging AI-driven technology, halal industry stakeholders can optimize supply chains, ensure compliance with halal certification standards, and enhance customer experiences, thus solidifying their position in an increasingly competitive market.

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In an article titled “Global Halal Standardisation and Muslim Diversity” authored by Dr. Eva Nisa, the State of the Global Islamic Economy (SGIE) has been issuing annual reports on the performance of the Islamic economy in 81 countries since 2013. For instance, its 2023/2024 report mentions that consumer spending in the halal economy, covering six categories—Islamic ethical finance, halal food, modest fashion, media and recreation, halal pharmaceuticals, and cosmetics— reached US$2.29 trillion in 2022, up from US$1.2 trillion reported in 2012. This substantial size is projected to grow annually due to the increasing global Muslim population and the rising demand among Muslims adopting a halal lifestyle.

No business or industry can thrive without embracing modern communication and technological tools. Two decades ago, business operations, manufacturing processes, and marketing strategies revolved around industry-specific software applications, online platforms, and advanced tools to enhance the promotion of products and services both locally and globally.

As technology continues to evolve at a rapid pace, business leaders, manufacturers, and marketers must constantly adapt and integrate the latest advancements to maximize efficiency and success across all aspects of their operations. 

From Concept to Reality: How AI is Revolutionizing Modern Technology

The concept of Artificial Intelligence (AI) is not a recent phenomenon. It dates back to the mid-20th century when Alan Turing, a renowned English mathematician, computer scientist, and philosopher, introduced the idea in his ground-breaking paper titled “Computing Machinery and Intelligence.” Presented at a seminar in 1950, Turing proposed a test—later known as the Turing Test—to evaluate a machine’s ability to exhibit intelligent behaviour indistinguishable from that of a human. This seminal work marked the inception of AI as a scientific discipline and laid the foundation for decades of research and innovation.

AI’s Impact on the Halal Industry

The Halal industry, encompassing food, beverages, cosmetics, pharmaceuticals, logistics, and financial services, has witnessed exponential growth over the past few decades. As consumer demand increases, businesses operating in the Halal sector face mounting challenges, including ensuring compliance with strict Halal standards, maintaining transparency in supply chains, and meeting diverse consumer expectations globally.

Artificial intelligence (AI) has the potential to revolutionize the auditing and analysis processes in Halal certification. By leveraging advanced algorithms, AI can efficiently analyze vast datasets, identify instances of non-compliance, and flag potential risks, significantly enhancing the accuracy and reliability of Halal certification systems.

The Halal industry has emerged as a lucrative sector in the modern industrial era, attracting global interest due to its robust growth and diverse market opportunities. AI has proven to be a game-changer in this domain, ensuring that production processes adhere to strict Halal standards while simultaneously improving the safety and quality of Halal products. Through sophisticated scanning, inspection, and monitoring capabilities, AI can detect errors in production, offering significant advantages such as enhanced compliance, streamlined supply chains, and increased operational efficiency.

For instance, Malaysia, Indonesia, and Thailand being a non-Muslim country, the Halal industry is witnessing remarkable growth, reflecting a rising awareness of the importance of Halal products as an integral aspect of lifestyle. This awareness transcends religious boundaries, gaining traction not only among Muslims but also among non-Muslims who value the quality and ethical considerations associated with Halal-certified goods. This heightened demand for Halal products is driving substantial business opportunities within the sector. In this context, the strategic use of AI modules in data growth and acquisition, data collection, and privacy management will drive substantial improvements across multiple areas. AI will optimize manufacturing processes, enhance product quality through predictive analytics, streamline data-driven decision-making, and ensure robust information delivery. Additionally, it will revolutionize marketing strategies by enabling personalized customer experiences and targeted campaigns, while maintaining strict data privacy standards. AI will evolve the Halal industry, in these countries, will further lift the production, quality, and marketing among Muslims and non-Muslims.

Recognizing the economic and cultural significance of the Halal industry, especially the Malaysian government has actively fostered its development. Strategic initiatives and supportive policies have been implemented to encourage growth, ensuring that Malaysia remains a key player in the global Halal market.

By integrating AI into the Halal certification process, the industry stands to benefit from improved transparency, efficiency, and consumer trust, paving the way for a more sustainable and technologically advanced future. This is where Artificial Intelligence (AI) comes into play, revolutionizing the industry in several transformative ways; for example:

1. Enhancing Halal Certification Processes

The process of obtaining Halal certification is rigorous, involving inspections, audits, and adherence to specific guidelines set by certifying authorities. AI can streamline and enhance these procedures by:

• Automating Compliance Checks: AI systems equipped with natural language processing (NLP) and image recognition capabilities can analyze product ingredients and manufacturing processes to ensure compliance with Halal standards.
• Real-Time Monitoring: AI-powered tools can provide real-time tracking of supply chains, identifying any deviations from Halal compliance. This ensures the integrity of Halal-certified products from production to retail.
• Blockchain Integration: When combined with blockchain, AI can enhance transparency by creating immutable records of each stage in the Halal certification process, assuring consumers of authenticity.

2. AI-Driven Quality Control in Halal Food Production

Maintaining high-quality standards in Halal food production is critical. AI plays a pivotal role in ensuring the purity, safety, and quality of Halal products by:

• Detecting Contaminants: Machine learning algorithms and AI-powered sensors can detect non-Halal substances or impurities in food items, preventing cross-contamination.
• Optimizing Production Lines: AI can automate repetitive tasks in food processing, reducing human error and ensuring adherence to Halal practices.
• Predictive Maintenance: AI tools can monitor production equipment for potential failures, minimizing downtime and ensuring uninterrupted compliance with Halal standards.

3. Revolutionizing Supply Chain Management

The Halal supply chain is complex, involving multiple stakeholders such as farmers, manufacturers, logistics providers, and retailers. AI is transforming supply chain management by:

• Improving Traceability: AI-powered platforms can track products from their origin to the consumer, ensuring transparency and accountability at every stage.
• Optimizing Logistics: AI can analyse routes, weather conditions, and delivery schedules to optimize the transportation of Halal goods, reducing costs and delivery times.
• Fraud Detection: By analysing supply chain data, AI systems can identify fraudulent practices, such as mislabelling or mixing non-Halal items with Halal products.

4. Enhancing Consumer Insights and Marketing

Understanding consumer preferences is vital for businesses to remain competitive. AI tools provide deep insights into consumer behaviour, enabling Halal industry players to:

• Personalize Marketing Campaigns: AI algorithms analyse consumer data to create targeted marketing campaigns tailored to specific demographics, such as young Muslims seeking innovative Halal products.
• Monitor Social Sentiment: AI-powered sentiment analysis tools help businesses understand consumer opinions and adapt their strategies to meet expectations.
• Recommendation Engines: E-commerce platforms can use AI to recommend Halal products based on individual consumer preferences, enhancing the shopping experience.

5. Advancing Research and Development (R&D)

AI is accelerating innovation in the Halal industry by facilitating research and development:

• Formulating Halal Alternatives: AI-driven data analysis can help researchers identify plant-based or synthetic alternatives to non-Halal ingredients, catering to the growing demand for vegan Halal products.
• Optimizing Recipes: AI algorithms can suggest recipe modifications to improve taste, texture, or nutritional value while maintaining Halal compliance.
• Predicting Market Trends: AI can analyse market data to predict emerging consumer trends, enabling businesses to stay ahead in developing new products.

6. Ensuring Ethical Finance and Investment

The Halal finance sector, governed by Shariah principles, has unique requirements, such as avoiding interest-based transactions and ensuring ethical investments. AI supports this sector by:

• Automating Compliance: AI algorithms can verify whether financial products adhere to Shariah principles, saving time and resources.
• Enhancing Risk Assessment: Machine learning models can analyse market data to identify low-risk, ethical investment opportunities.
• Streamlining Transactions: AI chatbots and virtual assistants improve customer service by addressing inquiries related to Halal financial products and services.

Challenges and Considerations

While AI offers significant advantages, its implementation in the Halal industry comes with challenges:

• Cultural Sensitivity: AI systems must be tailored to respect the cultural and religious nuances of the Muslim consumer base.
• Cost of Implementation: Adopting AI technologies can be expensive, posing a barrier for small and medium enterprises (SMEs) in the Halal industry.
• Data Privacy: Businesses must ensure that consumer data collected through AI is handled ethically and securely to build trust.

Conclusion

Artificial Intelligence has the potential to revolutionize the Halal industry, enhancing efficiency, transparency, and consumer satisfaction. By integrating AI into certification processes, quality control, supply chain management, marketing, R&D, and finance, businesses can meet the growing demand for Halal products while staying competitive in a rapidly evolving market. However, careful planning and consideration are essential to address the challenges associated with AI adoption. As the Halal industry continues to grow, leveraging AI will be a crucial step in ensuring its sustainable development on a global scale.

(The author is Sydney-based Journalist, Writer, Speaker, Editor-in-Chief, Tribune International (Australia) and Director, Halal Expo Australia. His email address is shassan@tribune-intl.com )

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