This study investigates the factors that influencing Islamic banks decision to adopt agricultural Salam financing. Data were collected through questionnaires distributed to Islamic bank staff and analyzed using descriptive statistics and Structural Equation Modeling (SEM). Results indicate that Islamic banks are more inclined to adopt Salam financing when operational costs are low and effective risk management strategies are in place. A strong positive correlation was found between Salam financing and profitability (β = 0.60), risk management (β = 0.61), and a negative correlation with operational costs (β = -0.53). These results suggest that Islamic banks are more likely to adopt Salam financing when operational costs and risks are low, and the product is profitable. Based on these findings, we recommend that Islamic banks integrate Salam financing as a viable Islamic alternative for agricultural funding. This initiative will enhance Islamic banks’ contributions to the sector while adhering to Islamic financial principles. Moreover, leveraging artificial intelligence can enhance efficiency, improve risk management capabilities, and facilitate informed decision-making, fostering sustainable agricultural development.