The quick development of digital technologies has brought major changes in the financial services sector, particularly in the methods used to access and carry out financial transactions. In recent years, digital payment systems have become a potent instrument for advancing financial inclusion. Became a potent instrument for advancing financial inclusion. by offering convenient, cost-effective, and easily accessible financial services to individuals across different socio-economic backgrounds. These systems have significantly reduced dependence on cash transactions and traditional banking channels, making financial services more widely available.

Artificial Intelligence (AI) incorporation into digital platforms has further strengthened this transformation by improving transaction security, enhancing fraud detection mechanisms, enabling efficient customer support through catboats, and offering personalized financial services based on user behavior. The impact of AI is the main emphasis of this paper. digital payment systems on financial inclusion in India. It also examines the major elements such as digital infrastructure, financial literacy, perceived security, usability, and technological awareness that impact the uptake of AI-enabled payment platforms. The study's conclusions indicate that digital payment systems have a major part in improving financial inclusion through increasing accessibility to financial services, reducing transaction costs, and building greater trust among users. Furthermore, these systems help integrate underserved and rural populations into the formal financial system. The study suggests that strengthening digital infrastructure, improving digital literacy, and enhancing cyber security measures are essential for maximizing the benefits of AI-based financial technologies.