The purpose of this paper is to identify and analyze the potential benefits which Artificial Intelligence (AI) and big data can bring to the businesses in Bahrain, the ways companies are investing and using AI and big data in conducting their businesses around the world, understand the key concepts of AI and big data, identify and review the challenges faced by businesses in implementing AI and big data analytics in their businesses and proposing recommendations to enhance the productivity and quality of the businesses processes. The methodology used in this paper is to collect data as case studies of companies based in Bahrain and data from Bahrain’s reliable government sources that are using/promoting AI and big data analytics to conduct their business activities, data through literature review of several articles in the relevant areas of AI and big data analytics and presenting recommendations based on the analysis as research outcomes. Through the study work, it has been found that although financial institutions are investing and implementing AI and big data in their processes especially in the customer onboarding, there is a need for further growth of AI and big data in the value-added services and design and navigation activities covering provision of data analytics, products fitting individual needs and goals, information about products, etc. In addition, the study work has noted several challenges and risks arising from regulatory requirements and inherent concerns/risks related with AI and big data that is acting as resistance for them in embracing AI and big data especially for the small and medium scale institutions. Understanding this, several recommendations are presented to improve the capabilities, decision-making and embrace AI and big data.