In the finance sector, the use of AI along with smart contracts is a game changer and improves the effectiveness, transparency and safety of the finances in the industry. This paper further demonstrates a plethora of industries where AI and smart contracts can be used such as cross border payments, credit scoring, algorithmic trading, decentralized finance and fraud detection. It reveals their ability to chair processes automatic, cut on expenses and enhance financial integration. Still, the research demonstrates the implications that affect the widespread adoption, such as scalability, integration, ethics, and legislation. By means of literature review and analysis, meet the gaps in data such as privacy issues, applicability of AI with blockchain and use of the technology in developing economies. Future Directions suggest frameworks for collaboration, ethical standards, privacy by design, and longitudinal studies. This study addresses an important gap in existing literature by considering the implications and consequences of AI and smart contracts in finance including how they can be used to achieve an inclusive and sustainable financial ecosystem.