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The financial institutions have been taking advantage of the new technologies, including artificial intelligence (AI) to improve their services and reduce costs. In recent years, globalization has given the financial institutions the opportunity to build global networks providing financial services worldwide. The new age, driven by digital technologies, is expected to revolutionize the way the financial institutions operate and conduct business as financial service providers. Not only will the new technologies will have a substantial impact on bank operations and profitability, but also on customers and investors. The financial services industry has long been an early adopter of technology. The telegraph system was still a novel idea when Western Union began using it for money transfers in the mid-19th century. Online banking emerged in the mid-1990s, half a decade after the internet and well before most people had an email account. This revolution in technology has gone from gathering data to connecting people. The next stage will be providing valuable interpretations of that data for those, now networked, people. As artificial intelligence (AI) is increasingly considered the new engine of growth in the modern age, different financial sectors-investment banks, retail banks and insurershave been incorporating it into their systems with varying degrees of success. These trends are surveyed and analysed here as well as the ways in which Al is being used. Al is at the forefront of a major shift within changed," Mr Peacock explains. "Coming back to the financial services industry, but periods of basics, you can either buy or sell, borrow or lend. rapid change are not without their risks. That's literally all you can do. It's as simple as that There is nevertheless an awareness of the risks Businesses that are able to get ahead of the curve associated with Al technologies within businesses, in Al adoption appear to be those carrying less and in some cases there are clear strategies technological baggage , making legacy systems to navigate them. However, coming to terms simpler to deal with. The benefits of greater with some of these notably the technological Al adoption are widely recognised across the and associated regulatory risksmay yet take financial services industry , including reduced a while. This is especially pertinent for banks cost base and better predictive analytics. Such whose business has not fundamentally changed innovation, and its costs, will inevitably drive and is unlikely to do so in future. "If we look at consolidation. And, ultimately, the focus on the business, if you look at the products that we customer satisfaction as a crucial measure of generate as financial institutions, they haven't success will drive more optimal market outcomes 1. What impact the digital technology will have on the performance of the banking system? Explain. 2. How Al helps the banking system to compete and increase their shares in the marketplace? 3. AS a customer, how do you explain the impact of the new technology adopted by the financial institutions? What are the challenges and opportunities that you have to encounter using the new technologies? 4. As an investor, how do you assess the benefit/risk of the new technologies on your investment? 5. In recent years, Bahrain has been able to make substantial progress in E-services including digital finance, what impact this progress in IT will have on the performance of the financial institutions in Bahrain? 6. If you want to forecast the future of financial services, how do you explain the impact of financial innovation in financial services on socio-economic development in Bahrain