Artificial intelligence (AI) is currently at the top of the political and scientific agendas. Every new technology that emerges is greeted with a great deal of excitement as well as skepticism regarding its potential effects on society, the economy, academia, education, and scientific research. This chapter aims to highlight the challenges facing the utilization of AI in Islamic studies teaching and research. The uniqueness of Islamic studies as a religious-based field and the diversity of the Islamic school of thought and interpretations in the Arab region heighten the complexity of this issue. Emphasis will also be placed on AI’s academic integrity, ethical neutrality, and compatibility to address centuries-long Islamic matters of debate and controversy. Besides the intellectual dilemma, teachers are facing complexities in utilizing this technology while juggling a behemoth pool of ideas, fatwas, and sectarian interpretations. A narrative literature review of the published literature in the field of study was carried out from a theoretical and contextual point of view. The gathered literature from related scholarly books and journal articles was subjected to a careful evaluation. The themes and key topics were identified. The written content was generated via analysis, comparison, and criticism. Recommendations were provided to draw a way forward for using AI in Islamic studies teaching and learning that may help Islamic studies teachers in the Arab region.