Artificial Intelligence has textured as innovative aspect in the banking area converting conventional practices and setting new standards for competence, customer experience and innovation. The present study examines the impact of artificial intelligence on Banking Industry. Exploring both opportunities and challenges posed by this innovative technology. This research commences by analysing the pioneering Artificial intelligence technologies being adopted in the banking industry. Successively, it explores the budding opportunities and advantages of Artificial intelligence integration in the banking sector, which include better customer personalisation, improved operational efficiency, fraud detection by enhancing risk management and the formation of new economic products and services to create more financial inclusion among customers. In addition to this the study focuses on the challenges faced by the banking sector by integration of Artificial intelligence such as regulatory framework, ethical dilemma, technological constraints and cyber security threats. By exploring into these aspects, the research aims to provide a comprehensive understanding of the impact of assimilation of artificial intelligence in the banking sector, covering its capacities to innovative business ideas, change customer interaction and redesign competitive environment.