AI is anticipated to enhance competitive advantages for financial organisations by increasing efficiency through cost reduction and productivity improvement, as well as by enhancing the quality of services and goods provided to consumers. AI applications in finance have the potential to create or exacerbate financial and non-financial risks, which could result in consumer and investor protection concerns like biassed, unfair, or discriminatory results, along with challenges related to data management and usage. The AI model's lack of transparency may lead to pro-cyclicality and systemic risk in markets, posing issues for financial supervision and internal governance frameworks that may not be in line with a technology-neutral regulatory approach. The primary objective of this research is to explore the effectiveness of Artificial Intelligence in preventing financial misconduct. This study extensively examines sophisticated methods for combating financial fraud, specifically evaluating the efficacy of Machine Learning and Artificial Intelligence. When examining the assessment metrics, this study utilized various metrics like accuracy, precision, recall, F1 score, and the ROC-AUC. The study found that Deep Learning techniques such as “Neural Networks, Convolutional Neural Networks, Recurrent Neural Networks /Long Short-Term Memory, and Auto encoders” achieved high precision and AUC-ROC scores in detecting financial fraud. Voting classifiers, stacking, random forests, and gradient boosting machines demonstrated durability and precision in the face of adversarial attacks, showcasing the strength of unity.