In the current technological development Artificial Intelligence (AI) has received acceptance level and seen drastic growth and applications in various domains. Financial Sector (FS) that includes Financial Markets (FM), institutions and policies have major impacts of AI. Another important benefit of application of AI is in Cost Modelling (CMD) which helps in determining the success factors of any business operations. AI aids in understanding and measuring the variable for CMD. AI technology brings massive transformation to the entire financial industry, which creates a series of new financial services such as intelligent consultant, intelligent lending, monitoring and warning, and intelligent customer service. This paper reviews the development and application of AI and its impacts on macroeconomics and microeconomics to show the advantages of AI in FS generally and in FM precisely. Risk Management's (RM) competencies have enhanced by the application of AI, this paper coves the reasons for growth of AI in general scenario and for RM specifically. This paper also describes three methods and challenges for CMD based on AI techniques. Three methods are Analog, Analytical and Parametric method for cost estimation and modelling. Results suggest the strategies and application of AI for financial RM and CMD.