Artificial intelligence (AI) has moved the banking sector into a new era, offering unmatched channels to improve efficiency, risk management, and customer experiences. The research delved into the role of AI in banking, particularly the applications, challenges, and implications. Descriptive research design is used to describe the acceptance rate of banking customers toward leveraging AI in Banking transactions through the Technology Acceptance Model (TAM) to prove the hypothesis that Attitude Towards Using AI mediates the individual effects of Perceived Usefulness, Perceived Ease of Use, and Perceived Risk with Behavioural Intention. The primary data was collected from 385 banking customers using the purposive sampling technique by circulating a structured questionnaire. This research shows that AI brings about more benefits than challenges, but it is crucial to handle the latter carefully to enable sustainable sectoral growth. The empirical results support the existence of a promising environment for AI adoption in the banking industry as there the customers show a positive behavioural intention.