Artificial Intelligence has rapidly transforming the functioning of the financial market globally. From high-speed algorithm trading to fraud detection and risk management, AI has become the essential part of the market infrastructure. In market where thousands of transaction occur every minute, AI enhances, accuracy, efficiency and decision making. From the increasing dependency of AI , it bring major challenges too which needs proper regulation. No doubt Artificial Intelligence played major role for the bank and traders but at the same time it contain sensitive data which is most likely to be stolen by cyberattacks. Benefits of Artificial Intelligence in Financial Market: 1 Algorithm trading: It help traders to invest more in financial market with the help of AI in massive form which eventually leads more benefit and in long term it's going to increase the funds for traders and banking sector. 2. Accuracy: AI gives real time report and reality to traders which make traders familiar with the truth and keep them away from loss and false belief. Same time it also give future prediction like how and when market going to upward and when oneself prevent from investing. 3. High Speed: We all being familiar with the capabilities of the AI it's not hidden from anyone like how accurately and speedy information to the bank and traders which eventually saves their time. key Challenges: 1. Algorithm bias: The major setback of AI tool is that it often crash the market by behaving arbitrarily as the old model of AI cannot work efficiently in modern system so there must be proper decoy of the tools by the SEBI. 2. Cyber threat: We know for every technical industry their data is their main power and it's been very sensitive which is most endanger to be attacked by the hackers and get the market crash. 3. Unpredictable decision by AI: Sometimes the decision taken by the AI is quite unpredictable for the SEBI too why the AI tool invest in particular stock and why it withdraw the amount which make it little harden to understand it completely. Regulation of AI: SEBI need to make proper rules like by who and how data can be used and what are the punishment if someone trying to mislead the system because when it comes on reality there are millions of traders who trust the tool and if it's nor regulated properly can cause immense loss to the traders which eventually loose the credibility in the eyes of the people and secondly every AI tool must be stress tested before getting introduce in market so officers can have real and authorise data about the system. Conclusion: AI is not an option it's the necessity either we adapt it or fall behind . It simple words we can say it's the future of upcoming generation .Even if there are certain challenges but these are not reasons to avoid the use of AI because no country can be expert at Day 1 .We need some strict regulation and rules to make it more efficient.