The technology advancement and the emergence of Artificial Intelligence (AI) is transforming the world. Finance industry is no different from rapidly transforming itself by increasing the customer satisfaction and optimising the services provided by them. Urban Cooperative Banks (UCBs) are an important fraction of the finance industry that supports financial inclusion by serving the local rural communities. Hence, the purpose of the research paper is to evaluate the impact AI has on the service efficiency of UCBs. One Sample t-test was used to analyse the collected data using the R Studio software. The analysed data found that Faster transaction processing, 24/7 uninterrupted banking services, Reduction in operational costs, Better integration with core banking systems, Voice-enabled banking services, I-powered chatbots for customer support, Real-time fraud detection, Improved customer complaint resolution, Market trend forecasting, Efficient workforce planning, and Automated regulatory compliance checks are high impacts of AI on service efficiency in UCBs.