This research paper aims to explore the growing influence of Artificial Intelligence (AI) in the banking sector, examining its implementation across various public and private banks. To identify the information used in banking and financial services, the data is collected from secondary sources based on literature review. The study explores various AI applications, including fraud detection, customer service automation, personalized banking, and data-driven decision-making. AI also helps with customer support via chatbots, security through biometrics, and offering tailored financial advice. By analyzing industry reports, academic research, and case studies, the paper will explore both the advantages and challenges of AI implementation in banking, as well as the future impact of this technology on the industry. This will explain how AI is helping in enhancing efficiency, improving customer satisfaction, and better risk management, while also addressing challenges like data privacy concerns, security risks, and the potential for job displacement. The findings offer valuable insights into the current state of AI adoption in banking and suggest strategies for overcoming the barriers to successful implementation, ultimately shaping the future of AI in the financial industry.