Artificial Intelligence (AI) is revolutionizing fraud detection, enhancing the ability of organizations to detect and prevent fraudulent activities. This article explores how AI utilizes machine learning, predictive analytics, and advanced algorithms to identify patterns and anomalies indicative of fraud. Key applications in financial services, e-commerce, insurance, telecommunications, and healthcare are highlighted, alongside the benefits of real-time detection, accuracy, scalability, and cost efficiency. The challenges of data quality, evolving fraud techniques, and integration with existing systems are also discussed. As AI technology advances, its critical role in safeguarding assets and ensuring security becomes increasingly evident.