Artificial intelligence plays a pivotal role in fraud detection by analyzing patterns and behaviors to identify anomalies. Machine learning algorithms sift through large datasets, detecting unusual transactions that may indicate fraudulent activity. By leveraging historical data, AI systems can improve their accuracy and adapt to emerging fraud tactics over time. These intelligent systems provide faster responses than traditional methods, helping organizations mitigate financial losses and regulatory penalties. The continuous evolution of AI enables enhanced risk assessment and more secure transaction environments in various sectors, including finance and e-commerce.