The financial sector is undergoing a paradigm shift driven by the integration of Artificial Intelligence (AI), which now informs not only operational automation but also strategic decision-making. This chapter explores how AI is redefining investment strategies, portfolio management, risk assessment, and sustainability integration. By combining cognitive analytics, predictive modeling, and algorithmic learning, AI enhances both active and passive investment approaches while enabling new asset classes through Decentralized Finance (DeFi) and smart contracts. In addition, AI supports real-time robo-advisory services and ESG investing with greater personalization, transparency, and accountability. This chapter further expands the discussion by incorporating a strategic management lens highlighting how AI facilitates organizational learning, dynamic capabilities, and strategic alignment. The convergence of algorithmic intelligence and financial systems is not just technological, it is a strategic transformation shaping competitive advantage, resilience, and governance in global finance.