The title says it all, let $A^B$ denote the set of all functions from $B$ to $A$, then it is better to write in set notation
$A^B = \{f\mid f:B \to A\}$ or $A^B = \{f :B \to A\mid f \text{ is a function}\}$
On
The notation $f:B\to A$ is typically used to denote that $f$ is a function from $B$ into $A$. Thus, saying $$A^B = \{f :B \to A| f \text{ is a function}\}$$ is like saying $A^B$ is the set of all functions $f:B\to A$ such that $f$ is a function. So there is some redundancy.
I, personally, would go with the first option, however your intentions seem clear using either notation.
On
Perhaps better still is
$$A^B = \{f \in {\mathcal P}(B \times A) \mid f \text{ is a function}\},$$
because this fits the more formal way of defining sets using the Axiom schema of specification (i.e. set builder notation in school math).
Let me expand on Dave L. Renfron's answer:
While all notations listed thus far are commonly used and I don't think there is anything wrong with it, there is a reason why $$ A^{B} = \{ f \in \mathcal P(B \times A) \mid f \text{ is a function} \} $$ is preferable. At least until one is comfortable with these notations and there is no fear that these semi-formal notations lead to any problems.
So, let's look at $$ \{ f \mid f \colon B \to A \} $$ again. This can be written equivalently as $$ \{ f \mid f \subseteq B \times A \wedge \forall b \in B \exists a \in A \forall \tilde{a} \in A \colon (b,a) \in f \wedge (b, \tilde{a}) \in f \rightarrow a = \tilde{a} \}. $$ This is pretty unreadable... However, the whole $f \subseteq B \times A \wedge \ldots$ part is simply a formula $\phi$ with $f$ as it's unique free variable. So, fixing $\phi$ as this formula, we have $$ A^B = \{f \mid \phi(f) \}. $$ This problem is, that one may now wrongfully think that this is a legitimate way to define sets. I.e. one might think that for any formula $\psi$ with a unique free variable $x$ $$ \{x \mid \psi(x) \} $$ is a set. However, if we take for example $\psi(x) \equiv x \not \in x$, then $$ \{ x \mid \psi(x) \} = \{x \mid x \not \in x \} $$ is not a set (see Russel's paradox). However, given any set $X$ and any well-formed formula $\psi$ with a unique free variable $x$ ($\psi$ may contain parameters, e.g. our $\phi$ above contained $A$ and $B$ as parameters) $$ \{ x \in X \mid \psi(x) \} $$ is a set. (This is the axiom of separation.)
Hence, if we write $$ A^B = \{f \in \mathcal P(B \times A) \mid f \text{ is a function}\} $$ it immediatly follows that $A^B$ is a set and we don't have to worry that we may have defined something weird. (*)
(*) Assuming that your background theory is something like $\operatorname{ZF}$ and consistent, but you shouldn't worry about this last remark. I only included it to be formally correct.