Holistic Framework for Blockchain-Based Halal Compliance in Supply Chains Enabled by Artificial Intelligence

Research by: Funlade Sunmola, George Baryannis, Albert Tan, Kenneth Co, & Emmanuel Papadakis

Executive Summary

The paper examines the increasing global demand for halal-certified food, emphasizing its ethical and sustainable aspects. Despite the growing interest, organizations face challenges in meeting halal requirements, such as fragmented information, low stakeholder awareness, complex certification processes, cross-contamination risks, and issues with product traceability.

Halal certification requires strict adherence across the entire supply chain, including sourcing, processing, and logistics. Several international bodies, such as JAKIM and MUI, regulate certification, which is increasingly tied to sustainability practices. A sustainable halal supply chain can reduce food wastage, improve stakeholder trust, and enhance overall performance. However, research on integrating sustainability into halal supply chains remains limited.

To address these challenges, the paper proposes a holistic framework leveraging Artificial Intelligence (AI) and blockchain technology. AI can automate compliance checks, detect irregularities, and support risk management, while blockchain provides a transparent, secure system for tracking product provenance, ensuring consumer trust. The framework integrates these technologies to cover three key aspects: ingredients, processes, and logistics.

An illustrative example in the paper demonstrates how knowledge graphs, machine learning, and smart contracts can streamline halal pre-certification. By fostering transparency and simplifying compliance, the framework enhances trust and confidence among stakeholders, offering a promising solution for a more sustainable and trustworthy halal food supply chain.

Key Research Questions Addressed:

RQ1. How can regulatory compliance and certification in halal supply chains be addressed holistically with digital technologies?

RQ2. How can AI and blockchain integration enable compliance and certification in halal supply chains?

The proposed framework as shown below highlights the potential of digital innovations in transforming halal certification and compliance processes, fostering sustainability, and building trust in the global halal food industry.

The proposed framework addresses key research questions regarding the use of digital technologies for regulatory compliance and certification in halal supply chains. Insights are as follows:

Findings on RQ1 (Digital Technologies for Compliance and Certification):

1. Digital technologies like blockchain, AI, and knowledge graphs can enhance accountability, traceability, transparency, and food safety monitoring, as acknowledged in the literature.
2. Adoption of these technologies in real-world halal supply chains remains limited.
3. The framework aligns specific technologies with corresponding challenges:

1. • Blockchain addresses traceability and trust issues.
   • Knowledge Graphs provide transparent, explainable data views.
   • Machine Learning (ML) automates data processing to streamline halal certification.

1. AI’s consistency in following guidelines minimizes human error and bias, ensuring more reliable halal certification and fostering stakeholder trust.

Findings on RQ2 (AI and Blockchain Integration for Certification):

1. Combining various AI technologies (e.g., knowledge graphs and ML) can offer complementary benefits while mitigating individual limitations.
2. Knowledge graphs effectively provide insights into halal supply chain data but lack predictive capabilities.
3. ML classifiers offer predictions, such as determining the halal status of new recipes, but their outputs often require post-hoc explanation using other AI tools.
4. Blockchain serves as a secure, immutable, and transparent platform that integrates AI technologies for a unified compliance process.
5. Smart contracts enhance decision-making efficiency by automating steps in the certification process.

The framework demonstrates how these technologies collectively improve trust, transparency, and efficiency in halal certification and compliance.

To cite this article: Sunmola, F., Baryannis, G., Tan, A., Co, K., & Papadakis, E. (2025). Holistic Framework for Blockchain-Based Halal Compliance in Supply Chains Enabled by Artificial Intelligence. Systems, 13(1), 21. https://doi.org/10.3390/systems13010021

To access this article: https://doi.org/10.3390/systems13010021

About the Journal

Systems is an international, peer-reviewed, open-access journal on systems theory in practice, including fields such as systems engineering management, systems-based project planning in urban settings, health systems, environmental management, and complex social systems, published monthly online by MDPI.

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