In the years since the pandemic and the rush to get the economy back on its feet, the banking industry has been at the forefront of widespread use of technology. Digitizing banking services helped institutions stay stable and allowed banks to offer services and solutions online, where a larger number of customers could access them. The demand for digital banking is changing the entire banking industry, which is leading to the creation of new solutions and a better experience for customers. Artificial intelligence (AI) is an area of technology that is advancing quickly all over the world. The financial services industry is quickly becoming one of the first to use AI. Financial institutions study and develop many different ways that technology can be used. Every day, new improvements are made to artificial intelligence that make it smarter and more advanced. In this article, we'll critically analyse the different ways that artificial intelligence is used in the Indian banking industry, as well as its benefits and the problems that India's AI is facing right now. The progress that artificial intelligence can make in the financial technology sector and the many ways it can improve how the banking industry in India works are discussed.