Instead, one of the cases is that artificial intelligence innovations are actively used in financial technology to provide new products and services, which presupposes serious changes in technology and legal positions regulating these approaches. The effective application of AI in the fintech industry requires attention to be turned to creating a clear legal framework that will guarantee reliability and security for the offered goods and protection of customers. AI analyses customer creditworthiness using big data, and based on that, banks and other credit institutions can make wider credit expansion in a quicker and safer manner. AI algorithms, also known as robo-advisors, offer investment advice and portfolio management advice that considers an individual’s financial goals. AI monitors transactions in real-time and can identify attempted financial fraud and money laundering. AI helps companies study customer needs and behaviour for personal financial products and services. Another critical aspect of AI regulation in fintech firms is the protection of personal data from customers. Legislation relating to the protection of personal data needs to be strictly applied. Financial technology firms should ensure that AI algorithms remain transparent so that customers and regulators understand how automated decisions come into being. What is more important, it is necessary to create ethical standards in using AI, a mechanism that will prevent discrimination and provide a guarantee that the consumers are treated in a due manner. While AI is indeed among the major contributors to the development of fintech, it can still be used effectively and safely only under proper legal regulation. A clear legal framework established will then not only maximize AI opportunities but also minimize the possible risks for all financial market participants. The elaboration of rules and their implementation by regulators and market participants will be an uphill task in view of ensuring compliance with the rule of law, transparency, and consumer protection in the context of the widespread use of the latest technologies.