# Bank of Montreal (BMO Financial Group): AI strategy

Source: https://www.bankingnewsai.com/banks/bmo-group
Last updated: Oct 5, 2026

*A group-level AI programme run by a Chief AI & Quantum Officer and a new institute, with 95%-plus employee use, a Copilot-wide workforce rollout, a C$1 billion-a-year benefit target by 2030 and an explicit rule that every AI initiative must earn at least one basis point.*

## How is BMO Financial Group using AI?

Bank of Montreal runs AI as a group-wide programme from Toronto: on April 9, 2026 it created the BMO Institute for Applied Artificial Intelligence & Quantum under Chief AI & Quantum Officer Kristin Milchanowski, and it reports AI adoption above 96% of employees, with 95% of teams using AI daily by August 2026 and more than 90% of its 53,000 staff using Microsoft Copilot. Disclosed projects include Aura, a generative-AI agent that drafts commercial credit assessments as the first step toward cutting underwriting time by roughly 50% by fiscal 2028; Lumi Assistant, which lifted productivity of new employees by 17%; SmartDecision, a BMO Insurance tool that decides life applications up to $5 million in seconds; and an Anthropic-built FIS financial-crimes agent that BMO is among the first to deploy. Management targets about C$1 billion a year of pre-provision, pre-tax income from AI initiatives by 2030 and funds a project only if it is expected to add at least one basis point. Milchanowski also says layoffs blamed on AI are 'lazy'. The group had C$1,538.7 billion of total assets at July 31, 2026; its US bank is covered separately at /banks/bmo-us.

## At a glance

| Field | Value |
| --- | --- |
| Lead bank | Bank of Montreal |
| Ticker | BMO (TSX), BMO (NYSE) |
| Headquarters | Toronto, Canada (head office: Montreal) |
| Home country | Canada |
| Total assets (as reported) | C$1,538.7bn total assets (reported in Canadian dollars) (Jul 31, 2026) |
| Charter | Canadian chartered bank; OSFI is the lead supervisor, and US operations are held through BMO Bank N.A. (covered at /banks/bmo-us) |

## Flagship platform: BMO Institute for Applied AI & Quantum, Lumi and Aura

BMO's AI work is organised under the BMO Institute for Applied Artificial Intelligence & Quantum, an enterprise-wide centre of excellence established on April 9, 2026 under Chief AI & Quantum Officer Kristin Milchanowski. Products sit beneath it: Lumi Assistant, a generative-AI tool over more than 8,000 Canadian personal and business banking policies and procedures in English and French (extended in 2026 to support client conversations, starting with mortgage renewals); Aura, the first agent in a commercial-credit programme that aims to cut underwriting time by roughly 50% by fiscal 2028, drafting credit-assessment commentary that underwriters review and own; and Microsoft Copilot, which more than 90% of the 53,000 employees use. Governance runs through an AI risk directive and a Responsible AI Forum that reviews significant initiatives. ([BMO Financial Group](https://newsroom.bmo.com/2026-04-09-BMO-Establishes-Institute-for-Applied-Artificial-Intelligence-Quantum), [BMO Financial Group](https://www.bmo.com/en-ca/main/about-bmo/news-insights/blog/meet-lumi-assistant-bmos-award-winning-ai-tool-empowering-team-bmo/), [BMO Financial Group (BMO AI Hub)](https://ai.bmo.com/our-stories/aura-helping-power-bmos-goal-of-50-faster-underwriting-by-2028), [Motley Fool via Yahoo Finance](https://finance.yahoo.com/markets/stocks/articles/bmo-bmo-q3-2026-earnings-174320317.html), [The Globe and Mail (Canadian Press)](https://theglobeandmail.com/business/article-artificial-intelligence-literacy-tech-finance-employers), [Bank of Montreal (SEC filing)](https://www.sec.gov/Archives/edgar/data/927971/000119312525307982/d938207dex992.htm))

## Key points

- Structure: the BMO Institute for Applied AI & Quantum (April 9, 2026) is an enterprise centre of excellence; Kristin Milchanowski is Chief AI & Quantum Officer and founding director, and BMO also named an inaugural chief digital officer, Brent Reston, in August 2026.
- Scale of use: adoption above 96% (April 2026), 95% of teams using AI daily (August 2026) and more than 90% of 53,000 employees on Microsoft Copilot (February 2026); AI is a core skill expected of new hires.
- Credit: Aura drafts commercial credit-assessment commentary for underwriters; the stated goal is roughly 50% less underwriting time and 70% of commercial processes powered by AI by fiscal 2028, with underwriters still accountable for decisions.
- Financial crime: the chief risk officer said at Investor Day that AI cut false AML alerts by about 10% and adverse-media searches from about 180 minutes to 20; FIS names BMO among the first deployers of its Anthropic-built Financial Crimes AI Agent.
- Money: management targets about C$1 billion a year of pre-provision, pre-tax income from AI initiatives by 2030, and Milchanowski says no initiative starts without an expected one-basis-point improvement.
- Governance: an AI risk directive, a cross-functional Responsible AI Forum, board oversight of AI strategy, and a code of conduct that allows only BMO-approved AI tools (including Microsoft Copilot).
- Labour stance: BMO says it hopes to grow revenue while keeping headcount roughly level, and its AI chief rejects AI-attributed layoffs as 'lazy'.
- The US bank's AI work is covered separately at /banks/bmo-us.

## Timeline

- Sep 22, 2026 — **C$1 billion a year from AI by 2030** The CFO reiterates the target for pre-provision, pre-tax income from AI initiatives; benefits are weighted to efficiency. ([MarketBeat via Yahoo Finance](https://finance.yahoo.com/markets/stocks/articles/bmo-sees-loan-demand-surge-020206941.html))
- Sep 15, 2026 — **Investment in Radical Ventures' Breakouts Fund** BMO backs a venture strategy for late-stage AI companies and says it plans to mobilize up to $70 billion over 10 years for sectors critical to economic security, including AI computing. ([BMO Financial Group (PR Newswire via Financial Post)](https://financialpost.com/press-releases/pr-newswire/bmo-invests-in-radical-ventures-breakouts-fund-to-help-scale-next-generation-of-ai-talent-and-drive-economic-growth))
- Aug 25, 2026 — **Q3 2026: Lumi extended to client conversations** The CEO says AI is 'already creating significant value'; Lumi lifted new-employee productivity by 17% and is being extended to client conversations starting with mortgage renewals; the results release lists investing in 'AI-powered capabilities' among capital priorities. ([Motley Fool via Yahoo Finance](https://finance.yahoo.com/markets/stocks/articles/bmo-bmo-q3-2026-earnings-174320317.html), [Bank of Montreal (SEC filing)](https://www.sec.gov/Archives/edgar/data/927971/000092797126000108/q32026mda.htm))
- Aug 21, 2026 — **Brent Reston named inaugural chief digital officer** American Banker's weekly roundup reports the appointment. ([American Banker](https://www.americanbanker.com/list/bmo-financial-names-brent-reston-chief-digital-officer))
- Aug 6, 2026 — **Aura: roughly 50% faster underwriting by fiscal 2028** The first agent in the commercial-credit transformation has moved from targeted testing into use in selected Commercial Banking underwriting workflows; underwriters remain accountable. ([BMO Financial Group (BMO AI Hub)](https://ai.bmo.com/our-stories/aura-helping-power-bmos-goal-of-50-faster-underwriting-by-2028))
- Jul 9, 2026 — **SmartDecision AI-enhanced life-insurance underwriting** BMO Insurance launches real-time decisions on eligible applications up to $5 million using analytics, predictive modelling and AI-enhanced capabilities. ([BMO Insurance (PR Newswire via Financial Post)](https://financialpost.com/press-releases/pr-newswire/bmo-insurance-launches-ai-enhanced-smartdecision-tool-delivering-a-faster-and-more-seamless-path-to-coverage-for-clients-and-advisors))
- Jun 17, 2026 — **'It's lazy': AI-attributed layoffs rejected** Milchanowski says BMO hopes to keep employment stable while revenues grow, and that it is still hiring engineers, developers, bankers and quantum developers. ([American Banker](https://www.americanbanker.com/news/its-lazy-bmos-milchanowski-on-ai-related-layoffs))
- May 4, 2026 — **FIS names BMO among first deployers of an Anthropic-built AML agent** BMO and Amalgamated Bank are in development with FIS's Financial Crimes AI Agent, built with Anthropic's Claude; general availability is planned for the second half of 2026. ([FIS (Business Wire via FT Markets)](https://markets.ft.com/data/announce/detail?dockey=600-202605041800BIZWIRE_USPRX____20260504_BW126906-1))
- May 4, 2026 — **Codat machine learning for business-client recommendations** BMO uses Codat to pull clients' payables data via APIs and generate next-product recommendations for salespeople; a Canadian pilot was due within months, with rollout by end-2026. ([American Banker](https://www.americanbanker.com/news/how-bmo-uses-ai-to-get-more-of-business-clients-business))
- Apr 24, 2026 — **'Return on Intelligence' podcast; adoption above 96%** BMO says AI adoption exceeds 96% across employees, with intelligent agents supporting frontline and operations teams. ([BMO Financial Group](https://newsroom.bmo.com/2026-04-24-BMO-Launches-Return-on-Intelligence-Podcast-AI,-Quantum,-and-the-New-Rules-of-Decision-Making))
- Apr 9, 2026 — **BMO Institute for Applied AI & Quantum established** An enterprise-wide centre of excellence; Milchanowski is appointed Chief AI & Quantum Officer effective April 6. BMO also cites its membership of the IBM Quantum Network and an Evident AI top-10 ranking. ([BMO Financial Group](https://newsroom.bmo.com/2026-04-09-BMO-Establishes-Institute-for-Applied-Artificial-Intelligence-Quantum))
- Mar 26, 2026 — **Investor Day: AI in the plan to lift returns** BMO targets ROE above 15% by 2028 with more AI; the CEO calls the AI strategy 'ambitious'; the CRO says AI cut false AML alerts about 10% and adverse-media searches from 180 to 20 minutes. ([Financial Post via Yahoo Finance Canada](https://finance.yahoo.com/news/bmo-aims-increase-business-u-200703810.html))
- Mar 13, 2026 — **Code of Conduct: approved AI tools only** Employees must follow the AI Risk Directive and use only BMO-approved AI tools, including Microsoft Copilot and Copilot Chat; unapproved external chatbots and generative-AI platforms may not be used for work tasks. ([Bank of Montreal (SEC filing)](https://www.sec.gov/Archives/edgar/data/927971/000119312526105793/d76162dex991.htm))
- Mar 11, 2026 — **Proxy circular: board oversight of AI** The board oversees strategic planning for AI, and the Risk Review and Audit and Conduct Review committees receive regular reporting on technology and cybersecurity risks, including AI. ([Bank of Montreal (SEC filing)](https://www.sec.gov/Archives/edgar/data/927971/000119312526102176/d63354dex991.htm))
- Feb 17, 2026 — **More than 90% of 53,000 employees use Microsoft Copilot** BMO's chief learning officer says AI is now a core skill for anyone BMO hires and that the bank is investing in an AI learning curriculum. ([The Globe and Mail (Canadian Press)](https://theglobeandmail.com/business/article-artificial-intelligence-literacy-tech-finance-employers))
- Dec 4, 2025 — **2025 annual report: AI risk directive and first in-house agentic app** An AI risk directive sets life-cycle standards, significant AI initiatives are reviewed by the Responsible AI Forum, and Capital Markets launched its first in-house agentic AI application, analysing historical underwritten loans for bankers. ([Bank of Montreal (SEC filing)](https://www.sec.gov/Archives/edgar/data/927971/000119312525307982/d938207dex992.htm))
- Jun 24, 2025 — **BMO joins FINOS effort on common AI controls** With Citi, Morgan Stanley and RBC, working with AWS, Microsoft and Google Cloud on open-source common controls for AI services. ([Banking Dive](https://www.bankingdive.com/news/banks-cloud-providers-ai-governance-standards-finos-citi-morgan-stanley-rbc-bmo/751698/))
- Jun 24, 2025 — **Lumi Assistant introduced** A generative-AI tool giving frontline staff instant access to more than 8,000 Canadian personal and business banking policies and procedures, in English and French; it has no access to client information. ([BMO Financial Group](https://www.bmo.com/en-ca/main/about-bmo/news-insights/blog/meet-lumi-assistant-bmos-award-winning-ai-tool-empowering-team-bmo/))
- Oct 1, 2024 — **Milchanowski becomes chief AI and data officer** American Banker says she has held the role since October 2024, responsible for enterprise-wide AI, data, analytics and robotics strategy; in her first year BMO launched 'AI for All', an enterprise-wide upskilling initiative. ([American Banker](https://www.americanbanker.com/news/bmos-kristin-milchanowski-is-39-on-the-most-innovative-people-in-finance-ranking))

## Where AI runs

| Use case | What | Status | Detail | Sources |
| --- | --- | --- | --- | --- |
| [Credit scoring & underwriting](https://www.bankingnewsai.com/ai-regulation/by-use-case#credit-underwriting) | Aura commercial credit agent | Rolling out | Generative-AI assistant that drafts commentary for key sections of commercial credit submissions from approved internal systems; underwriters review and decide. | [BMO Financial Group (BMO AI Hub)](https://ai.bmo.com/our-stories/aura-helping-power-bmos-goal-of-50-faster-underwriting-by-2028) |
| [Generative & agentic AI](https://www.bankingnewsai.com/ai-regulation/by-use-case#generative-agentic-ai) | Lumi Assistant | In production | Employee chatbot over 8,000-plus Canadian P&BB policies and procedures; new-employee productivity up 17%; being extended to client conversations, starting with mortgage renewals. | [BMO Financial Group](https://www.bmo.com/en-ca/main/about-bmo/news-insights/blog/meet-lumi-assistant-bmos-award-winning-ai-tool-empowering-team-bmo/), [Motley Fool via Yahoo Finance](https://finance.yahoo.com/markets/stocks/articles/bmo-bmo-q3-2026-earnings-174320317.html) |
| [Generative & agentic AI](https://www.bankingnewsai.com/ai-regulation/by-use-case#generative-agentic-ai) | Microsoft Copilot and Copilot Chat | In production | Workforce-wide generative AI, used by more than 90% of 53,000 employees and governed by approved-tools rules in the Code of Conduct. | [The Globe and Mail (Canadian Press)](https://theglobeandmail.com/business/article-artificial-intelligence-literacy-tech-finance-employers), [Bank of Montreal (SEC filing)](https://www.sec.gov/Archives/edgar/data/927971/000119312526105793/d76162dex991.htm) |
| [AML / KYC](https://www.bankingnewsai.com/ai-regulation/by-use-case#aml-kyc) | FIS Financial Crimes AI Agent (Claude) | Announced | AML alert and case investigation agent in development with FIS and Anthropic; BMO is among the first institutions to deploy it. | [FIS (Business Wire via FT Markets)](https://markets.ft.com/data/announce/detail?dockey=600-202605041800BIZWIRE_USPRX____20260504_BW126906-1) |
| [AML / KYC](https://www.bankingnewsai.com/ai-regulation/by-use-case#aml-kyc) | AI alert triage and adverse-media search | In production | False AML alerts down about 10%; adverse-media searches cut from about 180 minutes to 20. | [Financial Post via Yahoo Finance Canada](https://finance.yahoo.com/news/bmo-aims-increase-business-u-200703810.html) |
| [Generative & agentic AI](https://www.bankingnewsai.com/ai-regulation/by-use-case#generative-agentic-ai) | Capital Markets agentic loan-analysis application | In production | BMO's first in-house agentic AI application analyses historical underwritten loan transactions for bankers. | [Bank of Montreal (SEC filing)](https://www.sec.gov/Archives/edgar/data/927971/000119312525307982/d938207dex992.htm) |
| [Third-party & vendor AI](https://www.bankingnewsai.com/ai-regulation/by-use-case#third-party-vendors) | Codat next-product recommendations for business clients | Pilot | Machine learning on payments and payables data from more than 20 accounting and ERP systems, shared with treasury and payments salespeople. | [American Banker](https://www.americanbanker.com/news/how-bmo-uses-ai-to-get-more-of-business-clients-business) |
| [Credit scoring & underwriting](https://www.bankingnewsai.com/ai-regulation/by-use-case#credit-underwriting) | SmartDecision life-insurance underwriting | In production | Real-time decisions on eligible Term, Universal and Whole Life applications up to $5 million; the CEO cites decisions in as little as 10 seconds against an industry average of 28 business days or more. | [BMO Insurance (PR Newswire via Financial Post)](https://financialpost.com/press-releases/pr-newswire/bmo-insurance-launches-ai-enhanced-smartdecision-tool-delivering-a-faster-and-more-seamless-path-to-coverage-for-clients-and-advisors), [Motley Fool via Yahoo Finance](https://finance.yahoo.com/markets/stocks/articles/bmo-bmo-q3-2026-earnings-174320317.html) |
| [Generative & agentic AI](https://www.bankingnewsai.com/ai-regulation/by-use-case#generative-agentic-ai) | Rovr AI advisor assistant | In production | An advisor-facing generative-AI assistant in individual insurance, enhanced in fiscal 2025 as groundwork for an agentic framework. | [Bank of Montreal (SEC filing)](https://www.sec.gov/Archives/edgar/data/927971/000119312525307982/d938207dex992.htm) |
| [Model risk management](https://www.bankingnewsai.com/ai-regulation/by-use-case#model-risk) | AI risk directive, Responsible AI Forum and model validation | In production | Life-cycle standards for every AI initiative, pre-implementation review of significant ones by a cross-functional forum, and validation and monitoring of all models that use AI. | [Bank of Montreal (SEC filing)](https://www.sec.gov/Archives/edgar/data/927971/000119312525307982/d938207dex992.htm) |
| [AI governance (general)](https://www.bankingnewsai.com/ai-regulation/by-use-case#governance-general) | Board oversight and approved-tools rule | In production | The board oversees AI strategy; committees receive reporting on AI-related technology risk; employees may use only BMO-approved AI tools. | [Bank of Montreal (SEC filing)](https://www.sec.gov/Archives/edgar/data/927971/000119312526102176/d63354dex991.htm), [Bank of Montreal (SEC filing)](https://www.sec.gov/Archives/edgar/data/927971/000119312526105793/d76162dex991.htm) |

## Disclosed numbers

| Measure | Value | As of | Sources |
| --- | --- | --- | --- |
| Employee AI adoption | Above 96% | Apr 24, 2026 | [BMO Financial Group](https://newsroom.bmo.com/2026-04-24-BMO-Launches-Return-on-Intelligence-Podcast-AI,-Quantum,-and-the-New-Rules-of-Decision-Making) |
| Teams using AI daily | 95% | Aug 6, 2026 | [BMO Financial Group (BMO AI Hub)](https://ai.bmo.com/our-stories/aura-helping-power-bmos-goal-of-50-faster-underwriting-by-2028) |
| Employees using Microsoft Copilot | More than 90% of 53,000 | Feb 17, 2026 | [The Globe and Mail (Canadian Press)](https://theglobeandmail.com/business/article-artificial-intelligence-literacy-tech-finance-employers) |
| Commercial underwriting time target | Roughly 50% lower by fiscal 2028, with 70% of commercial processes powered by AI | Aug 6, 2026 | [BMO Financial Group (BMO AI Hub)](https://ai.bmo.com/our-stories/aura-helping-power-bmos-goal-of-50-faster-underwriting-by-2028) |
| Target annual benefit from AI initiatives | About C$1 billion of pre-provision, pre-tax income by 2030 | Sep 22, 2026 | [MarketBeat via Yahoo Finance](https://finance.yahoo.com/markets/stocks/articles/bmo-sees-loan-demand-surge-020206941.html) |
| Lumi: productivity of new employees | +17% | Aug 25, 2026 | [Motley Fool via Yahoo Finance](https://finance.yahoo.com/markets/stocks/articles/bmo-bmo-q3-2026-earnings-174320317.html) |
| Policies and procedures covered by Lumi | More than 8,000 | Jun 24, 2025 | [BMO Financial Group](https://www.bmo.com/en-ca/main/about-bmo/news-insights/blog/meet-lumi-assistant-bmos-award-winning-ai-tool-empowering-team-bmo/) |
| AML false alerts / adverse-media search time | About -10% / about 180 to 20 minutes | Mar 26, 2026 | [Financial Post via Yahoo Finance Canada](https://finance.yahoo.com/news/bmo-aims-increase-business-u-200703810.html) |
| SmartDecision life-insurance decision time | As little as 10 seconds vs 28 business days or more industry average | Aug 25, 2026 | [Motley Fool via Yahoo Finance](https://finance.yahoo.com/markets/stocks/articles/bmo-bmo-q3-2026-earnings-174320317.html) |
| Minimum return for an AI initiative | At least one basis point (revenue or cost) | Jun 17, 2026 | [American Banker](https://www.americanbanker.com/news/its-lazy-bmos-milchanowski-on-ai-related-layoffs) |
| Total assets | C$1,538.7bn (Canadian dollars) | Jul 31, 2026 | [Bank of Montreal (SEC filing)](https://www.sec.gov/Archives/edgar/data/927971/000092797126000108/q32026mda.htm) |

## Quotes

> "BMO has been applying AI across the bank for decades to personalize client experiences, augment our teams and automate our business." — Kristin Milchanowski, Chief AI & Quantum Officer, Apr 9, 2026 ([BMO Financial Group](https://newsroom.bmo.com/2026-04-09-BMO-Establishes-Institute-for-Applied-Artificial-Intelligence-Quantum))

> "With some of the layoffs that we're seeing, I think it's quite frankly lazy" — Kristin Milchanowski, Chief AI and Data Officer, Jun 17, 2026 ([American Banker](https://www.americanbanker.com/news/its-lazy-bmos-milchanowski-on-ai-related-layoffs))

> "At BMO, we're not to start an initiative without knowing that it's going to create one basis point of an improvement, whether by revenue or cost reduction" — Kristin Milchanowski, Chief AI and Data Officer, Jun 17, 2026 ([American Banker](https://www.americanbanker.com/news/its-lazy-bmos-milchanowski-on-ai-related-layoffs))

> "BMO is committed to building AI and Quantum capabilities that are innovative, trusted and centred on our clients." — Steve Tennyson, Chief Technology & Operations Officer, Apr 9, 2026 ([BMO Financial Group](https://newsroom.bmo.com/2026-04-09-BMO-Establishes-Institute-for-Applied-Artificial-Intelligence-Quantum))

> "At our Investor Day, we highlighted the many ways that AI is already creating significant value" — Darryl White, Chief Executive Officer, Aug 25, 2026 ([Motley Fool via Yahoo Finance](https://finance.yahoo.com/markets/stocks/articles/bmo-bmo-q3-2026-earnings-174320317.html))

> "We get lots of alerts through our algorithm; AI has been able to take down the number of false alerts already by about 10 per cent" — Piyush Agrawal, Chief Risk Officer, Mar 26, 2026 ([Financial Post via Yahoo Finance Canada](https://finance.yahoo.com/news/bmo-aims-increase-business-u-200703810.html))

> "AI is now a core skill for anyone we are bringing into the institution" — Larissa Chaikowsky, Chief Learning Officer and Head of Talent, Feb 17, 2026 ([The Globe and Mail (Canadian Press)](https://theglobeandmail.com/business/article-artificial-intelligence-literacy-tech-finance-employers))

## Who runs AI

- **Kristin Milchanowski** — Chief AI & Quantum Officer; Founding Director, BMO Institute for Applied AI & Quantum ([BMO Financial Group](https://newsroom.bmo.com/2026-04-09-BMO-Establishes-Institute-for-Applied-Artificial-Intelligence-Quantum), [American Banker](https://www.americanbanker.com/news/bmos-kristin-milchanowski-is-39-on-the-most-innovative-people-in-finance-ranking))
- **Darryl White** — Chief Executive Officer, BMO Financial Group ([Motley Fool via Yahoo Finance](https://finance.yahoo.com/markets/stocks/articles/bmo-bmo-q3-2026-earnings-174320317.html), [Bank of Montreal (SEC filing)](https://www.sec.gov/Archives/edgar/data/927971/000092797126000108/q32026mda.htm))
- **Steve Tennyson** — Chief Technology & Operations Officer ([BMO Financial Group](https://newsroom.bmo.com/2026-04-09-BMO-Establishes-Institute-for-Applied-Artificial-Intelligence-Quantum), [BMO Financial Group](https://newsroom.bmo.com/2026-04-24-BMO-Launches-Return-on-Intelligence-Podcast-AI,-Quantum,-and-the-New-Rules-of-Decision-Making))
- **Brent Reston** — Chief Digital Officer (inaugural; named August 2026) ([American Banker](https://www.americanbanker.com/list/bmo-financial-names-brent-reston-chief-digital-officer))
- **Piyush Agrawal** — Chief Risk Officer ([Motley Fool via Yahoo Finance](https://finance.yahoo.com/markets/stocks/articles/bmo-bmo-q3-2026-earnings-174320317.html), [Financial Post via Yahoo Finance Canada](https://finance.yahoo.com/news/bmo-aims-increase-business-u-200703810.html))
- **Rahul Nalgirkar** — Chief Financial Officer ([Motley Fool via Yahoo Finance](https://finance.yahoo.com/markets/stocks/articles/bmo-bmo-q3-2026-earnings-174320317.html), [MarketBeat via Yahoo Finance](https://finance.yahoo.com/markets/stocks/articles/bmo-sees-loan-demand-surge-020206941.html))
- **Sharon Haward-Laird** — Group Head, Canadian Commercial Banking & North American Integrated Solutions (Aura programme) ([BMO Financial Group](https://bmo.com/en-ca/main/about-bmo/corporate-information/executive-bios/sharon-haward-laird), [BMO Financial Group (BMO AI Hub)](https://ai.bmo.com/our-stories/aura-helping-power-bmos-goal-of-50-faster-underwriting-by-2028))
- **Matt Mehrotra** — Group Head, Canadian Personal and Business Banking ([Motley Fool via Yahoo Finance](https://finance.yahoo.com/markets/stocks/articles/bmo-bmo-q3-2026-earnings-174320317.html))
- **Aron Levine** — Group Head, U.S. Banking ([Motley Fool via Yahoo Finance](https://finance.yahoo.com/markets/stocks/articles/bmo-bmo-q3-2026-earnings-174320317.html))
- **Lori Bieda** — Chief Data & Analytics Officer, North American Personal and Business Banking (June 2025; Lumi) ([BMO Financial Group](https://www.bmo.com/en-ca/main/about-bmo/news-insights/blog/meet-lumi-assistant-bmos-award-winning-ai-tool-empowering-team-bmo/))
- **Larissa Chaikowsky** — Chief Learning Officer and Head of Talent (AI training) ([The Globe and Mail (Canadian Press)](https://theglobeandmail.com/business/article-artificial-intelligence-literacy-tech-finance-employers))

## Regulators it answers to

- [OSFI](https://www.bankingnewsai.com/ai-regulation/osfi) — BMO's lead federal supervisor; OSFI Guideline E-23 on model risk management, effective May 1, 2027, extends model-governance expectations to AI models used in underwriting agents like Aura and in AML and insurance decisioning.
- Financial Consumer Agency of Canada — Market-conduct obligations apply to AI-assisted sales and servicing in Canadian personal and business banking, such as Lumi's extension to client conversations and Codat-driven product recommendations.
- [Federal Reserve](https://www.bankingnewsai.com/ai-regulation/federal-reserve) — BMO Financial Corp. is the US intermediate holding company; third-party and model-risk guidance frames group AI platforms used by US staff. The US bank is covered at /banks/bmo-us. See [SR 23-4](https://www.bankingnewsai.com/ai-regulation/documents/fed-sr-23-4), [SR 26-2](https://www.bankingnewsai.com/ai-regulation/documents/fed-sr-26-2).
- [OCC](https://www.bankingnewsai.com/ai-regulation/occ) — BMO Bank N.A. is a national bank supervised by the OCC, which governs US use of group credit-assessment agents; US-only detail is on /banks/bmo-us. See [OCC Bulletin 2026-13](https://www.bankingnewsai.com/ai-regulation/documents/occ-bulletin-2026-13).
- [Basel Committee](https://www.bankingnewsai.com/ai-regulation/basel-committee) — Group-wide data and third-party arrangements for AI platforms, including a vendor-built AML agent and cloud and Copilot dependencies, engage BCBS 239 data-aggregation principles and the Basel third-party risk principles. See [BCBS 239](https://www.bankingnewsai.com/ai-regulation/documents/bcbs-239), [BCBS Third-Party Risk Principles (Dec 2025)](https://www.bankingnewsai.com/ai-regulation/documents/bcbs-third-party-risk-principles-2025).

## What the record suggests

### A stated return rule turns AI into a measurable commitment

BMO ties each initiative to at least one basis point of benefit and publishes a C$1 billion-a-year target for 2030 and a 50% underwriting-time goal for fiscal 2028. Those numbers can be checked quarter by quarter, which few banks invite.

### Adoption is broad because the tools are standard

The 90%-plus Copilot figure and the approved-tools rule suggest BMO reached high use by licensing and governing a mainstream assistant for everyone, and building custom agents (Lumi, Aura) only where a workflow justified it.

### Vendor agents inside the AML programme

FIS naming BMO among the first deployers of an Anthropic-built financial-crimes agent places a third-party agent inside a core control. The release says investigators keep every decision and the data stays in FIS-controlled infrastructure, which is the governance detail supervisors are likely to test.

### Headcount stance is a public promise

Hoping to grow revenue 'with the same volume of people', while hiring engineers and bankers, sets a testable benchmark against peers that cite AI in restructuring. The record gives intent, not a headcount figure.

## FAQ

### Who runs AI at BMO?

Dr. Kristin Milchanowski is BMO's Chief AI & Quantum Officer and founding director of the BMO Institute for Applied Artificial Intelligence & Quantum, established in April 2026; she had been chief AI and data officer since October 2024. Chief Technology & Operations Officer Steve Tennyson fronted the Institute's launch, and Brent Reston was named the bank's first chief digital officer in August 2026.

### What AI tools does BMO use?

Disclosed tools include Lumi Assistant for employees, Aura for commercial credit drafting, Microsoft Copilot (used by more than 90% of employees), the SmartDecision insurance underwriting tool, Codat-based recommendations for business clients, and an FIS financial-crimes agent built on Anthropic's Claude that BMO is among the first to deploy.

### How much does BMO expect to gain from AI?

BMO's CFO reiterated in September 2026 a target of about C$1 billion a year of pre-provision, pre-tax income from AI initiatives by 2030, and the bank aims to cut commercial underwriting time by roughly 50% by fiscal 2028. Management says each AI initiative must be expected to add at least one basis point.

### Is BMO's US bank covered separately?

Yes. BMO Bank N.A. and BMO's US AI activity are covered at /banks/bmo-us; this page covers the group (Canadian banking, capital markets, wealth and group-level AI governance).

## Sources (21)

1. BMO Establishes Institute for Applied Artificial Intelligence & Quantum — BMO Financial Group, Apr 9, 2026. https://newsroom.bmo.com/2026-04-09-BMO-Establishes-Institute-for-Applied-Artificial-Intelligence-Quantum
2. BMO Launches Return on Intelligence Podcast - AI, Quantum, and the New Rules of Decision-Making — BMO Financial Group, Apr 24, 2026. https://newsroom.bmo.com/2026-04-24-BMO-Launches-Return-on-Intelligence-Podcast-AI,-Quantum,-and-the-New-Rules-of-Decision-Making
3. Aura: Helping power BMO's goal of 50% faster underwriting by 2028 - BMO Ai Hub — BMO Financial Group (BMO AI Hub), Aug 6, 2026. https://ai.bmo.com/our-stories/aura-helping-power-bmos-goal-of-50-faster-underwriting-by-2028
4. Meet Lumi Assistant: BMO’s award-winning AI tool empowering Team BMO — BMO Financial Group, Jun 24, 2025. https://www.bmo.com/en-ca/main/about-bmo/news-insights/blog/meet-lumi-assistant-bmos-award-winning-ai-tool-empowering-team-bmo/
5. Sharon Haward-Laird (undated page, retrieved 2026-10-05) — BMO Financial Group, Oct 5, 2026. https://bmo.com/en-ca/main/about-bmo/corporate-information/executive-bios/sharon-haward-laird
6. Bank of Montreal Form 40-F for fiscal 2025, Exhibit 99.2: 208th Annual Report 2025, Management's Discussion and Analysis — Bank of Montreal (SEC filing), Dec 4, 2025. https://www.sec.gov/Archives/edgar/data/927971/000119312525307982/d938207dex992.htm
7. BMO Financial Group Reports Third Quarter 2026 Results: Report to Shareholders (Form 6-K, Exhibit 99.1) — Bank of Montreal (SEC filing), Aug 25, 2026. https://www.sec.gov/Archives/edgar/data/927971/000092797126000108/q32026mda.htm
8. Notice of Annual Meeting of Shareholders and Management Proxy Circular 2026 (Form 6-K, Exhibit 99.1) — Bank of Montreal (SEC filing), Mar 11, 2026. https://www.sec.gov/Archives/edgar/data/927971/000119312526102176/d63354dex991.htm
9. BMO's Code of Conduct (Form 6-K, Exhibit 99.1) — Bank of Montreal (SEC filing), Mar 13, 2026. https://www.sec.gov/Archives/edgar/data/927971/000119312526105793/d76162dex991.htm
10. BMO (BMO) Q3 2026 Earnings Call Transcript — Motley Fool via Yahoo Finance, Sep 1, 2026. https://finance.yahoo.com/markets/stocks/articles/bmo-bmo-q3-2026-earnings-174320317.html
11. BMO aims to increase business in the U.S., return on equity to more than 15% by 2028 — Financial Post via Yahoo Finance Canada, Mar 26, 2026. https://finance.yahoo.com/news/bmo-aims-increase-business-u-200703810.html
12. BMO Sees Loan Demand Surge as Returns Rise Toward 2027 Targets — MarketBeat via Yahoo Finance, Sep 22, 2026. https://finance.yahoo.com/markets/stocks/articles/bmo-sees-loan-demand-surge-020206941.html
13. #39 Kristin Milchanowski's AI for All initiative is based on an "innovation without empathy is empty" premise — American Banker, Jun 1, 2026. https://www.americanbanker.com/news/bmos-kristin-milchanowski-is-39-on-the-most-innovative-people-in-finance-ranking
14. 'It's lazy:' BMO's Milchanowski on AI-related layoffs — American Banker, Jun 17, 2026. https://www.americanbanker.com/news/its-lazy-bmos-milchanowski-on-ai-related-layoffs
15. How BMO uses AI to get more of business clients' business — American Banker, May 4, 2026. https://www.americanbanker.com/news/how-bmo-uses-ai-to-get-more-of-business-clients-business
16. BMO Financial names Brent Reston chief digital officer — American Banker, Aug 21, 2026. https://www.americanbanker.com/list/bmo-financial-names-brent-reston-chief-digital-officer
17. FIS Brings Agentic AI to Banking with Anthropic, Starting with Financial Crimes – Company Announcement — FIS (Business Wire via FT Markets), May 4, 2026. https://markets.ft.com/data/announce/detail?dockey=600-202605041800BIZWIRE_USPRX____20260504_BW126906-1
18. BMO Insurance launches AI-enhanced SmartDecision tool delivering a faster and more seamless path to coverage for clients and advisors — BMO Insurance (PR Newswire via Financial Post), Jul 9, 2026. https://financialpost.com/press-releases/pr-newswire/bmo-insurance-launches-ai-enhanced-smartdecision-tool-delivering-a-faster-and-more-seamless-path-to-coverage-for-clients-and-advisors
19. Major employers in tech and finance expect new hires to be ‘AI literate’ — The Globe and Mail (Canadian Press), Feb 17, 2026. https://theglobeandmail.com/business/article-artificial-intelligence-literacy-tech-finance-employers
20. BMO Invests in Radical Ventures' Breakouts Fund to Help Scale Next Generation of AI Talent and Drive Economic Growth — BMO Financial Group (PR Newswire via Financial Post), Sep 15, 2026. https://financialpost.com/press-releases/pr-newswire/bmo-invests-in-radical-ventures-breakouts-fund-to-help-scale-next-generation-of-ai-talent-and-drive-economic-growth
21. Banking industry, big tech unite to forge AI adoption guidelines — Banking Dive, Jun 24, 2025. https://www.bankingdive.com/news/banks-cloud-providers-ai-governance-standards-finos-citi-morgan-stanley-rbc-bmo/751698/

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