AI is transforming the banking sector at an unprecedented speed and rate about operational efficiency, customer engagement and experience, and risk control and mitigation. This research is to explore the impact of AI performance on banking performance in the Kingdom of Bahrain across four main facets: Technological Change, Cyber Security Measures, Organizational Issues, and Regulatory Factors. A quantitative approach has been used to build up a picture, and a structured survey was used to collect data from banking practitioners in Bahrain, and qualitative perspectives regarding AI solutions and practices were acquired from financial institutions implementing AI-based technologies. The research showed that bank performance improved overall when adopting AI for operations in a whole-of-bank application, and for banking in Bahrain, could be seen about: automating financial processes, fraud detection improvements, decision-making improvements, and the evolution of cybersecurity frameworks. The research was successful in showing that technological change, cybersecurity measures, and organizational factors were key factors in performance improvements. However, regulatory factors were shown to have little impact on AI adoption, in that financial institutions are equipped to produce more efficient, secure, and automated services, without needing to comply with a regulatory-driven AI adoption. The research also presented limitations in respect of an engagement of ethical, legal and socio-economic risks and issues with regards to the adoption of AI for the banking industry, whilst acknowledging the requirement for agile regulation in designing banking services, the responsible use of AI and discuss the issues of ethical uses of technology in financial services.