Artificial Intelligence (AI) is revolutionizing the financial services industry, offering unparalleled opportunities for efficiency, innovation, and personalized services. However, along with its benefits, AI in financial services raises significant legal and ethical concerns. This paper explores the legal accountability and ethical considerations surrounding the use of AI in financial services, aiming to provide insights into how these challenges can be addressed. The legal accountability of AI in financial services revolves around the allocation of responsibility for AI-related decisions and actions. As AI systems become more autonomous, questions arise about who should be held liable for AI errors, misconduct, or regulatory violations. This paper examines the existing legal frameworks, such as data protection laws, consumer protection regulations, and liability laws, and assesses their adequacy in addressing AI-related issues. Ethical considerations in AI implementation in financial services are paramount, as AI systems can impact individuals' financial well-being and access to services. Issues such as algorithmic bias, transparency, and fairness are critical in ensuring ethical AI practices. This paper discusses the importance of ethical guidelines and frameworks for AI development and deployment in financial services, emphasizing the need for transparency, accountability, and fairness. The paper also examines the role of regulatory bodies and industry standards in addressing legal and ethical challenges associated with AI in financial services. It proposes recommendations for policymakers, regulators, and industry stakeholders to promote responsible AI practices, including the development of clear guidelines, enhanced transparency measures, and mechanisms for accountability. Overall, this paper highlights the complex interplay between AI, legal accountability, and ethical considerations in the financial services industry. By addressing these challenges, stakeholders can harness the full potential of AI while ensuring that it is deployed in a responsible and ethical manner, benefiting both businesses and consumers.