This study examines the impact of Artificial Intelligence (AI) disclosure on the financial performance of Indonesian banks. Data were collected from 135 annual reports of 45 banks published and listed on the Indonesia Stock Exchange from 2021 to 2023. AI disclosure is categorized into three groups: digital awareness, transformation, and capabilities; AI application, product, service, and process; and AI information challenges and cyber security threats. Return on Assets (ROA), Price Earnings Ratio (PER), and Total Operating Expenses (TOE) were used to measure the Financial Performance. The frequency of AI-related terms in annual reports is used to construct an AI disclosure index. Multiple linear regression analysis reveals a consistent increase in AI-related disclosure since 2022. The results show that digital awareness, transformation, and capabilities show no significant effect on ROA, PER, or TOE. Conversely, AI applications, products, services, and processes positively affect TOE but not ROA or PER. AI information challenges and cybersecurity threats positively affect ROA and TOE but negatively affect PER. This research contributes to the Accounting Information Systems literature. It suggests implications for companies and government policy-making, highlighting the importance of AI disclosure for company value and formulating policies and standards regarding AI information disclosure.