As technology advances, particularly in the area of artificial intelligence, organised crime has grown to be one of the world’s most urgent problems, impacting many nations. Due to the internet’s worldwide accessibility, illicit activity has been on the rise in the digital society. In particular, artificial intelligence (AI) poses a serious risk to the public and has led to an increase in organised crime. In addition, application of revolutionary technology is unlawful and poses significant threat to the stability of our society and global security. Critical groups are now applying Artificial Intelligence (AI) to support fraudulent transactions to engage in cybercrime by hacking and employing more sophisticated methods like deep fakes to blackmail individuals. As well, they are spreading disinformation and carrying out massive cyberattacks. In the current study, the researchers will examine the way criminal groups are employing the AI-based algorithms to design and organize illegal actions to make profits. There are also notable legal issues that have arisen as a result of the digital transformation, such as the issue of establishing mens rea where criminal organizations have performed crimes through the application of AI technologies, and the issue of AI algorithms being criminal masterminds. This paper dwells on the ethical problems that are related to algorithm-based decisions and examines the inadequacies of the existing legal system in responding to these problems. This research study determines the reason behind the need to have a strict legislative solution to address not only the problem of accountability but also the ethical issue. In conclusion, the paper finds that it is extremely important that a detailed legislative framework, a stronger regulatory framework, and international co-operation would help to effectively address the problems generated by Artificial Intelligence and its impact on organised crime.