The present paper is an attempt to focus on the implementation of Artificial Intelligence (AI) in the banking sector. Banking sector has achieved tremendous significance in the economy of the nation as well as the world. It works on the basis of financial transactions of various types. Due to its emergence as the part and parcel of everyone’s life, it has been facing many security issues. Compliance, Fraud, Cyber security, integrating new technologies and Identity Theft are some issues before banking sector. The solution for making the banking sector customer centric and customer friendly is Artificial Intelligence. AI is a computer based machines replication of human intellect. It is the gifted innovation of technology. It includes the theory and development of computer systems able to carry out tasks normally requiring human intelligence, such as visual perception, speech recognition, decision-making, and translation between languages.