The financial sector has both tremendous potential and problems as a result of the relationship between artificial intelligence and behavioural finance. Important factors to take into account include ethical concerns as well, such as the possibility that AI will be used to influence investor behaviour or jeopardize data privacy. Furthermore, the quick speed at which AI is developing presents difficulties for regulatory organizations, which must change in order to properly monitor AI's use in finance and make sure that these innovations don't increase systemic risk or market volatility. In this work, artificial intelligence in behavioural finance will be thoroughly examined. It explores how psychological influences on financial decision-making may be both amplified and mitigated by AI. Examining the state of AI in behavioural finance at the moment, the study highlights the practical, ethical, and legal issues that need to be resolved while also pointing out tremendous potential for innovation and advancement