Bank of Montreal has launched the BMO Institute for Applied Artificial Intelligence and Quantum, led by Kristin Milchanowski, who has expanded her role from chief AI and data officer to oversee both AI and quantum initiatives. She described the institute as a platform for the convergence of AI and quantum, with the bank aiming to stay at the forefront of both fields.
Quantum computing: portfolio optimization, risk analysis, and AML
The institute is exploring quantum use cases in portfolio optimization, risk analysis, and anti-money laundering. Milchanowski said her team has reached what she calls 'quantum utility'—performing real business functions in a quantum environment and obtaining useful results. However, she stressed that no institution has yet moved into production: "It's still early, but not too early to be invested in." McKinsey data shows that in 2024, 39% of surveyed quantum firms had more than 100 employees, up from 9% a year earlier.
AI gains: 10% fewer false alerts, search time slashed to 20 minutes
AI is delivering measurable efficiency gains at BMO. Chief risk officer Piyush Agarwal revealed at a March event that AI has reduced the number of false AML alerts by about 10%, and adverse media search tasks have shrunk from roughly 180 minutes to 20 minutes. These improvements are helping BMO rely more on AI to meet financial targets.
Other major Canadian lenders are also scaling AI efforts. Toronto-Dominion Bank plans to use AI to simplify operations and generate significant cost savings, while Royal Bank of Canada stresses the need to stay competitive in an 'AI arms race.'
Partnerships and tokenized cash platform
Alongside the institute, BMO has deepened its tech ecosystem involvement. It became the first Canadian institution to join the IBM Quantum Network, gaining access to quantum infrastructure and research collaboration. The bank was also ranked among the top 10 banks globally for AI innovation by Evident AI and won the Commercial Banking Impact Award from Datos Insights.
In addition, BMO plans to launch a 24/7 tokenized cash platform in partnership with CME Group and Google Cloud—the first deployment of CME's tokenized cash solution on Google Cloud's Universal Ledger, marking BMO's entry into digital asset infrastructure.