Exemplary embodiments of the present disclosure directed towards an artificial intelligence system and method for performing settlements based on activity, user groups, and set of virtual/physical entities. The artificial intelligence system comprises artificial intelligence settlement engine configured to enable users for activity and provide activity templates to the artificial intelligence settlement engine from the computing device by the users. Customize the activity templates fully/partially based on dynamic needs and then provide the customized activity templates to the artificial intelligence settlement engine. The artificial settlement engine configured to integrate settlement process steps and/or rules into the settlement process sequence on the artificial intelligence settlement engine and then map settlement process steps and/or rules with the activity templates by the artificial intelligence settlement engine. The artificial settlement engine configured to identify shortest paths on the computing device to settle amount between users by using dynamic parameters and/or settlement process steps and/or rules.