said<\/a> Milchanowski, a quantum mathematician. She added that the institute will \u201cprovide a platform for AI and quantum to converge,\u201d with the bank intending to remain at the forefront of developments in both fields.<\/p>\nThe initiative also builds on BMO\u2019s long-standing use of AI, while introducing a more structured effort to develop quantum capabilities alongside governance, ethics, and commercialization expertise.<\/p>\n
<\/p>\n
Quantum computing is widely seen as capable of solving problems that traditional systems cannot handle efficiently, though it remains largely in an experimental phase. Industry momentum is rising, with McKinsey & Company noting that 39% of surveyed quantum firms in 2024 had more than 100 employees, up from just 9% a year earlier.<\/p>\n
Milchanowski said her team has already reached what she described as \u201cquantum utility,\u201d meaning it can \u201cdo a real business function inside of a quantum environment and get a useful result.\u201d Even so, she emphasized the work is still in its early stages and remains research-driven.<\/p>\n
\u201cI don\u2019t know of any institution that is actually putting it into production,\u201d she said. \u201cIt\u2019s still early, but not too early to be invested in and making sure we are prepared for the near future.\u201d<\/p>\n
BMO is examining how quantum techniques could be applied to portfolio optimization, risk analysis, and anti-money laundering processes, areas where complex calculations can benefit from advanced computing methods.<\/p>\n
AI continues to deliver operational gains<\/h1>\n
Banks have already integrated AI into core operations, particularly in fraud detection and customer service, while quantum applications are still under exploration.<\/p>\n
BMO has said it plans to rely more heavily on AI to meet financial targets in the coming years. Chief risk officer Piyush Agarwal highlighted its impact on compliance processes, particularly in anti-money laundering.<\/p>\n
\u201cWe 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,\u201d he said at a March event. He added that tasks such as adverse media searches have been reduced from roughly 180 minutes to about 20 minutes.<\/p>\n
Other major Canadian lenders are also scaling their AI efforts. Toronto-Dominion Bank has outlined plans to use AI to simplify operations and generate significant cost savings, while Royal Bank of Canada has stressed the need to stay competitive in what it described as an \u201cAI arms race.\u201d<\/p>\n
BMO expands partnerships and technology investments<\/h2>\n
The launch of the institute comes as BMO deepens its involvement in advanced computing ecosystems. The bank recently became the first Canadian institution to join the IBM Quantum Network, extending its access to quantum infrastructure and research collaboration.<\/p>\n
It has also received industry recognition, including being ranked among the top 10 banks globally for AI innovation by Evident AI and winning the Commercial Banking Impact Award for Artificial Intelligence and Advanced Analytics from Datos Insights.<\/p>\n
Alongside these efforts, BMO is moving into digital asset infrastructure. The bank plans to roll out a 24\/7 tokenized cash platform in partnership with CME Group and Google Cloud, marking the first deployment of CME\u2019s tokenized cash solution on Google Cloud\u2019s Universal Ledger.<\/p>\n
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