Sarcouncil Journal of Engineering and Computer Sciences

Abstract: This article is a complete discussion of the groundbreaking role of artificial intelligence in modernizing enterprise systems in the financial services industry. It explores how financial institutions can, systematically, convert their old monolithic systems to new, modern AI-driven systems that respond to the urgent issues in the industry. The article outlines an organized framework that consists of architectural transformation, intelligent capability integration, and constant intelligence implementation. It breaks high-value applications such as fraud detection, customized banking experience, regulatory compliance, and micro-frontend solutions. The article offers a roadmap to achieve successful modernization through a thorough analysis of implementation methodologies, such as domain-driven decomposition, strategic capability prioritization, parallel architecture implementation, MLOps infrastructure, and organizational transformation. At the end of the article, best practices analysis is provided in data quality, regulatory compliance, security, and talent development, with mitigation strategies suggested on the basis of industry best practices. This is a multi-faceted solution that meets technological and organizational aspects of modernizing the enterprise, offering a systematic way of advancing financial institutions in AI-based change processes.