Artificial intelligence (AI) is revolutionizing the finance sector by enhancing decision-making, risk management, and operational efficiency. This paper explores AI's role in finance, its evolution, applications, and economic impacts, highlighting key techniques such as machine learning and deep learning. AI’s ability to process large datasets and detect patterns offers financial institutions opportunities to optimize performance and mitigate risks. However, AI also presents challenges such as labor displacement and regulatory concerns. This study examines AI's techniques, benefits, and implications while considering the macro and microeconomic effects of AI. The paper also emphasizes the need for adaptive public policies to promote equitable growth