In recent years, Artificial Intelligence (AI) and Machine Learning (ML) have significantly transformed the financial sector. These technologies enable organizations to analyse large volumes of data, predict risks, and support effective investment decisions. This research paper examines the applications of AI and ML in financial risk assessment and investment decision-making. The study is based on secondary data collected from journals, books, and online academic sources. The findings indicate that AI and ML improve prediction accuracy, reduce human errors, and enhance financial performance. However, challenges such as ethical issues, data security, and lack of transparency continue to hinder their full adoption. The study concludes that AI and ML will play a critical role in the future of financial management and investment strategies.