This research paper aims to shed light on technology, especially artificial intelligence (AI), which is considered as one of the most important factors affecting economic development in the world today. The use of AI in the financial and banking sector is an essential part of the digital transformation that this sector is witnessing and a key to improving services and increasing profitability. In Algeria, in particular, the financial and banking sector is characterized by its increasing adoption of technology to enhance its efficiency and improve its services. This research study revealed important results, at the top of which the fact that big data analysis, which the financial and banking sector in Algeria relies on and uses AI to extract patterns and trends from this data, helps in creating accurate market predictions and making sound financial decisions. The study also showed that risk management and fraud prevention help in improving lending processes by analyzing data more accurately, and thus reducing financial risks. It also revealed that customer service has been being improved by providing immediate and personalized support via chat bots and virtual robots, and that intelligent systems can use AI to understand customer needs and provide solutions effectively. The paper came up with a set of recommendations, at the top of which Algerian authorities need to further support AI adoption as it is a great opportunity to improve the financial and banking sector in Algeria by increasing efficiency, improving predictions, and promoting innovation as with the continued technological development, the role of AI in these two sectors is expected to increase, and its impact will deepen positively on the Algerian economy as a whole.