Background: Artificial intelligence has risen to prominence as a subject of study. The pace of artificial intelligence evolution in Bangladesh's IT industry is increasing by the day. In Bangladesh's IT Industry, artificial intelligence (AI) offers enormous potential. Despite the huge potential and advantages of AI implementation or adoption, Bangladesh's IT industry is still failing to move forward with its AI implementation. Objectives: The objective of this study is to identify the main factors that disturb the implementation of AI in the IT Company of Bangladesh. Novelty: In Bangladesh, most of the AI-related research conducted by focusing existing Scope of AI in the Bangladesh, as Bangladesh is in the initial phase of AI Adoption, this paper, therefore, sought to find out the factors that inhibit IT Industry to implement AI. Method: A quantitative method is used to find the results of the study. This paper reports on the results of an online survey questionnaire involving 51 IT professionals from a large IT company of Bangladesh about their perception regarding AI to find out the challenges. Results: Result indicates certain major challenges in AI implementation in Bangladesh’s IT Industry like Lack of AI skills and Incomplete knowledge or understanding regarding AI's capabilities and limitations, Internal culture Lack of Financial investment, , Data management, Lack of technological Infrastructure, Lack of top managerial support, Lack of legal and ethical framework, Non AI Approaches are sufficient by encapsulating them into three challenges context-organizational, environmental and technical barriers using IS theory TOE framework. Contributions: The study offers Insights to policymakers, executives and top-level managers to pay attention of adopting AI in IT Industry of Bangladesh by overcoming the challenges, besides further research can be conducted on how Bangladesh IT industry can overcome the AI implementation challenges. Conclusion: As Bangladesh is progressing with Technology, hence this is a high time to identify the major challenges that inhibit the AI Implantation in Bangladesh’s IT Industry. Policymakers, executives and top-level managers should find a proper solution policy to mitigate the challenges and adapt AI to boost up IT Industry of Bangladesh.