This project promotes an approach for the Human Computer Interaction (HCI) where cursor movement can be controlled using a real-time camera, it is an alternative to the current methods including manual input of buttons or changing the positions of a physical computer mouse. Instead, it utilizes a camera and computer vision technology to control various mouse events and is capable of performing every task that the physical computer mouse can. The Virtual Mouse colour recognition program will constantly acquiring real-time images where the images will undergone a series of filtration and conversion. Whenever the process is complete, the program will apply the image processing technique to obtain the coordinates of the targeted colours position from the converted frames. After that, it will proceed to compare the existing colours within the frames with a list of colour combinations, where different combinations consists of different mouse functions. If the current colours combination found a match, the program will execute the mouse function, which will be translated into an actual mouse function to the users' machine. With the development technologies in the areas of augmented reality and devices that we use in our daily life, these devices are becoming compact in the form of Bluetooth or wireless technologies. $is paper proposes an AI virtual mouse system that makes use of the hand gestures and hand tip detection for performing mouse functions in the computer using computer vision. Main objective of the proposed system is to perform computer mouse cursor functions and scroll function using a web camera or a built-in camera in the computer instead of using a traditional mouse device. Hand gesture and hand tip detection by using computer vision is used as a HCI with the computer. With the use of the AI virtual mouse system, we can track the fingertip of the hand gesture by using a built-in camera or web camera and perform the mouse cursor operations and scrolling Function and also move the cursor with it. While using a wireless or a Bluetooth mouse, some devices such as the mouse, the dongle to connect to the PC, and also, a battery to power the mouse to operate are used, but in this paper, the user uses his/her built-in camera or a webcam and uses his/her hand gestures to control the computer mouse operations. In the proposed system, the web camera captures and then processes the frames that have been captured and then recognizes the various hand gestures and hand tip gestures and then performs the particular mouse function.