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PREVIEW This chapter covers the historical development of artificial Intelligence (AI) techniques and the use of expert systems. How expert systems were introduced ever since 1950, and their applicability. This chapter also explains the concept of expert systems, their architecture, and the need for employing them Besides it discusses the importance of the expert system in different areas with special reference to banking and finance. Further, this chapter narrows down to the applicability of an expert system in different areas of banking and identifies the areas where expert systems can be employed. Thus this chapter reveals the specific area from the banking and finance sector; this study will be concentrating on it. 1.1 Review of Literature The 1950s started the "real" development of AI and related programming languages. During the early 1950s, Arthur Samuel of IBM developed the first game-playing program for checkers. The Samuel machine learning programs were responsible for the high performance of the checkers game player. By the mid the term "Artificial Intelligence" (AI) was coined by John McCarthy of MIT at the 1956 Dartmouth The conference was the first conference devoted to AI. Later in 1958, he invented the LISP language.