Al-Kharaj: Journal of Islamic Economic and Business
Vol. 8 No. 3 (2026): All articles in this issue include authors from 3 countries of origin (Indonesi

The Efficiency Paradox of Artificial Intelligence A Critical Analysis of Ibn Khaldun's Labor Value Theory Perspective on the Dehumanization of Production

Baitul Hamdi (Andalas University)
Wahyudin Abdullah (Andalas University)
Sarah Syukri (Andalas University)



Article Info

Publish Date
02 Sep 2026

Abstract

Purpose: This study reconstructs Ibn Khaldun's economic thought to address the fundamental challenges presented by the era of Artificial Intelligence and Industry 5.0. It examines the intersection of labor value theory and the concept of ta'awun to critique the dehumanization of production. The research aims to develop a human-centric production framework that integrates technological advancements with Islamic economic ethical principles. Methods: This study uses a qualitative literature review based on a Contextual Hermeneutics approach. The main data comes from the Book of Muqaddimah by Ibn Khaldun, with additional information from the World Economic Forum (WEF) 2025 and the International Labour Organization (ILO) on Generative AI. The analysis combines content analysis and comparative analysis to compare employment dislocation statistics with spiritual concepts and Al-Kasb. Results : The findings indicate that prioritizing total efficiency and zero marginal costs through AI substitution may trigger a Khaldunian Traps, in which the removal of human labor undermines economic value and purchasing power. According to Khaldunian theory, labor constitutes the substance of value; therefore, complete automation generates a value void and diminishes social solidarity (Asabiyyah). Additionally, the "Human-in-the-Loop" model presents a paradox, as it often leads to dehumanization through exploitative microwork. This process undermines the dignity of Kasb and exacerbates structural inequalities, particularly affecting women in the administrative sector. Implications: Consequently, this study recommends that policymakers adopt Industry 5.0 frameworks and AI models aligned with Islamic ethics. Policies must strictly prioritize the development of "labor-augmenting" technologies to prevent social disparity and preserve the integrity of community solidarity.

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Journal Info

Abbrev

alkharaj

Publisher

Subject

Economics, Econometrics & Finance

Description

Al-Kharaj, Journal of Islamic Economic and Business is peer-reviewed journal published by program studi ekonomi syariah , Institut Agama Islam Negeri (IAIN) Palopo. Al-Kharaj focus on the research of Islamic Economic and Business. The aims of this journal is to explore and develop economic related ...