One such technology that is changing banking in India in recent years is Artificial Intelligence (AI), which is significantly impacting customer interactions, increasing efficiency, strengthening fraud prevention and enabling better customer service delivery, and improving the digital banking experience. With the emergence of AI-powered features such as chatbots, Virtual assistants, predictive analytics and automated decision making, these tools not only enhance the quality and user-friendliness of user service but also pose challenges related to data privacy, cyber security, transparency, and ethical use of user data. This research paper aims at examining the effect of AI on Indians trust and attempts to focus on a study comparing the use of banking service and its effects associated with banking using AI and the confidence, reliability, satisfaction and security of the Indian towards the banking services. Study uses the quantitative research method and structured questionnaire for the study survey, the sample of the study are the banking customers the private sector bank and public sector bank of India. Descriptive analysis, reliability testing, correlation, and regression analysis are used statistical techniques to assess the impact of AI usage on customer trust. The analysis shows that where AI can make an impact, it's positive, such as improving the way customers feel they can access services, feel more secure in the transaction, has less fraud and enjoys more personalized banking experience. However, the questions of transparency of the algorithms, data protection and human involvement remain crucial points of trust. The report recommends that banks implement responsible use of AI, strengthen cybersecurity protocols, work towards more regulatory compliance, and improve communication and transparency to restore trust in the future and help increase the adoption of AI-powered banking services in India..