BMO is leaning into investments in artificial intelligence as part of its core strategy, saying it expects the deployment of AI to add more than $1 billion in pre-tax earnings by 2030.
On Thursday, CEO Darryl White said during the bank’s Investor Day presentation that over 96 per cent of employees are already using AI company-wide.
“AI represents one of the most significant value creation opportunities for BMO, and we’re approaching it with the discipline, the clarity, and the purpose that we can deliver,” he said. “It starts by putting AI in the hands of every employee.”
His remarks at Investor Day shine a light on how one of Canada’s largest banks is embracing the rapidly evolving technology while addressing general concerns that AI will replace some white-collar jobs.
BMO executives maintained that AI will not substitute human advice to clients, and that physical branches remain vital to the bank’s “human and digital” focus.
White said that the lender has three priorities when it comes to deploying AI: personalizing client experiences, automating parts of the business and improving employee productivity.
For example, in 2025, BMO introduced an AI chatbot that allows frontline workers to quickly comb through 8,000 bank policies and procedures documents while they assist clients, resulting in a 60 per cent reduction in call volumes to an internal help desk.
“As a regulated financial services institution, the policy and compliance processes are both critical and really time-consuming,” said White. “Augmenting our teams to navigate these processes efficiently is driving significant benefits.”
According to the bank, the chatbot alone is expected to deliver $4 million in annual cost savings. BMO said it plans to expand the use of this chatbot to help employees prepare for mortgage renewal and investment conversations with clients.
AI has also been useful in the anti-money laundering segment by significantly reducing the number of false alerts the bank gets, said chief risk officer Piyush Agrawal.
Last year, BMO was among the top 20 banks leading AI adoption in the world in a ranking by the Evident AI Banking Index. Other top Canadian players included RBC, which came in third place, and TD, which took the 13th spot.
According to a recent survey by KPMG of 104 C-suite, vice-president or director-level respondents, a large majority of Canadian financial services leaders view generative AI as critical to their business, with 86 per cent investing in the technology despite high levels of economic uncertainty.
Contributing to the fast AI adoption is competitive pressure as well as the desire for improved productivity.
“The urgency is clear,” wrote the authors of the survey. “Organizations recognize that Generative AI is no longer optional, but a non-negotiable lever for increased efficiency.”
