The convergence of machine learning (ML) and artificial intelligence (AI) technologies is significantly altering traditional approaches to financial decision-making. This review article delves deeply into the various ways that AI and ML are transforming the banking and finance sector. The review of important topics including risk assessment, portfolio management, and algorithmic trading is primarily driven by the transformative potential of machine learning algorithms. Provided is a thorough manual for professionals navigating the AI-driven financial world, along with case study insights and discussions of the ethical, legal, and transparent issues related to AI applications in finance. Furthermore, with an emphasis on the convergence of AI with blockchain and decentralized finance, the paper forecasts future developments and offers a strategic roadmap for responsible AI integration in financial decision-making processes.