This abstract explores the profound impact of AI technology on the financial sector and how it is transforming modern-day financial institutions into the era of Banking 4.0. AI has revolutionized various aspects of finance, including customer service, risk management, and operational efficiency. Through advanced algorithms and machine learning, AI enables personalized customer experiences, efficient data analysis, and improved decision-making. It also enhances fraud detection and prevention capabilities, reducing financial risks. As financial institutions embrace AI, they undergo a paradigm shift, transitioning into a more agile, customer-centric, and technologically advanced era of Banking 4.0.