Regardless of the individual perspectives on Artificial Intelligence (AI), it can transform the personal and professional lives at an unprecedented pace. It will also impact one of the most regulated and supervised industries in the world - the financial sector. Risk-based supervision (RBS) has been the gold standard for financial sector supervision over the past two decades, promising to aid supervisors in fulfilling their extensive and constantly growing responsibilities with limited resources. The remarkable advancement of AI in recent years, both in terms of performance and accessibility, promises to revolutionize numerous industries, including the financial sector. The benefits of AI for financial sector supervision extend beyond the automation of some manual activities. Moreover, AI can enable supervisors to undertake processes that were previously considered too time-consuming or and impossible to perform at the previous stage of technological development. Recognizing that the financial sector and its regulatory bodies are inevitably part of this ongoing evolution, the authors set out in this paper to examine the tangible impact of AI on the financial sector, with a particular focus on the supervisory perspective and the transition to an effective RBS regime. The authors also attempted to forecast the medium- and long-term implications of AI on the roles and responsibilities of the financial sector supervisor. This exploration seeks to enhance our understanding of how AI is influencing the financial landscape and its implications for future regulatory practices.