BMO Expands AI and Quantum Computing for Smarter Banking

BMO is expanding its technology ambitions with a new enterprise wide initiative focused on artificial intelligence and quantum computing, highlighting how seriously major banks are treating the future of innovation. The bank has launched the BMO Institute for Applied Artificial Intelligence & Quantum, a new organization that will oversee AI innovation, application, governance, and the development of quantum capabilities across the business. BMO says the institute is meant to improve client experiences, increase efficiency, support long term growth, and ensure that advanced technologies are adopted responsibly across its global banking operations.

The institute will be led by Kristin Milchanowski, who has taken on the role of chief AI and quantum officer after previously serving as BMO’s chief AI and data officer. She will guide the bank’s AI and quantum strategy, act as a thought leader, and oversee governance across the enterprise. BMO says the institute will bring together specialists from science, policy, ethics, and commercialization, giving the bank a more coordinated way to manage fast moving technologies. Executives have stressed that the goal is not only to move faster, but also to stay disciplined in managing risk and operating at scale while remaining accountable during a period of exponential change.

Although BMO has used AI for decades to personalize client experiences, support employees, and automate business processes, quantum computing is a newer frontier for the bank. In early 2025, BMO joined the IBM Quantum Network, becoming the first Canadian bank to do so. That gave it access to IBM’s advanced quantum infrastructure and the ability to begin developing and testing quantum powered solutions across its operations. Milchanowski has said BMO believes quantum holds transformative potential, especially in areas such as investment portfolio optimization and risk management, and that the bank wants to build experience early so it can be prepared when the technology becomes more practical at scale.

BMO’s existing AI work already shows how deeply the technology is being embedded into everyday banking. One important initiative is a 12 month mortgage forecasting model developed in response to volatility in Canada’s housing market. By combining traditional time series methods with deep learning, BMO created a forecasting system that reduced prediction errors and improved business planning. The project is expected to deliver major annual benefits by helping the bank allocate resources more effectively as market conditions shift. Its focus on interpretability, transparency, and scalability also helped it stand out from peers and earn industry recognition.

The bank has also advanced AI powered personalization through its Next Best Offer solution, which determines the most relevant offer for each client based on their needs, financial profile, and credit situation. First piloted in a retail banking campaign, the system increased engagement across all nine key retail product categories and generated a notable lift in revenue compared with the previous strategy. BMO is now expanding the tool across digital campaigns and continuing to refine it through test and learn programs. Milchanowski has also pointed to the bank’s growing work with AI agents, including tools that help customers understand their portfolios, analyze customer call transcripts to identify pain points, improve communication, and automate internal compliance processes.

Another major example of BMO’s AI maturity is the Lumi Assistant, a generative AI powered tool built in house for employees. Lumi provides real time conversational banking support through mobile and online platforms, helping staff answer questions more quickly and accurately. Unlike traditional search tools, it understands natural language, offers contextual guidance, and aligns responses with internal policies and procedures. Since launching, Lumi has improved efficiency, reduced risk, and strengthened governance through traceable interactions. Together, the new institute, the bank’s quantum push, and its growing portfolio of AI solutions show that BMO is not simply experimenting with new technologies. It is building an infrastructure designed to make banking smarter, faster, more personalized, and more competitive in the years ahead.

Works Cited

“BMO Accelerates Quantum Push With New Tech Institute.” PYMNTS, 10 Apr. 2026, www.pymnts.com/artificial-intelligence-2/2026/bmo-accelerates-quantum-push-with-new-tech-institute/. 

Khairnar, Shruti. “BMO Leverages AI at Scale to Deliver Smarter, Faster Banking Experiences.” The Digital Banker, www.thedigitalbanker.com/bmo-leverages-ai-at-scale-to-deliver-smarter-faster-banking-experiences/. 

Saulsbery, Gabrielle. “BMO Launches AI, Quantum Computing Institute.” Banking Dive, 9 Apr. 2026, www.bankingdive.com/news/bmo-launches-ai-quantum-computing-institute/817076/. 

“Banco De Montreal.” iStock by Getty Images, www.istockphoto.com/es/search/2/image-film?phrase=banco+de+montreal&tracked_gsrp_landing=https%3A%2F%2Fwww.istockphoto.com%2Fes%2Ffotos%2Fbanco-de-montreal. 

“Quantum Computing Has Advantages Over Traditional but Still in Early Innings: BMO.” MSN, www.msn.com/en-us/news/technology/quantum-computing-has-advantages-over-traditional-but-still-in-early-innings-bmo/ar-AA1TTUVD.