TD Bank Group has committed to allocate up to C$25m over three years into AI development and adoption.
The work will be carried out through a tie-up involving technology company Cohere and Layer 6, which was acquired by TD in 2018 and now functions as the Canadian group’s AI centre of excellence.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
The two groups will examine how AI developed in Canada can be used within TD to raise productivity, support decision-making and improve client experience.
TD said the alliance combines Cohere’s secure enterprise AI models and technical expertise with Layer 6’s applied research capabilities and its understanding of the bank.
The aim is to assess practical AI uses across the business.
A team from Cohere will work alongside Layer 6 at the MaRS Discovery District site, placing technical specialists closer to teams working on AI use cases.
The bank said this work will add to its wider efforts to build AI literacy, research and knowledge sharing in Canada.
The move also draws on the experience of Layer 6, which has been involved in TD’s work in machine learning, predictive analytics and AI.
TD strategic growth, innovation and partnerships executive vice president and vice chair Rizwan Khalfan said: “Canada has extraordinary AI talent, research and companies. The opportunity now is to connect that strength and translate it into practical applications that create value for clients.
“Our collaboration with Cohere brings together expertise, experimentation and real-world application in ways that can help Canada lead not only in AI innovation, but also in responsible adoption.”
In a separate development, six Canadian banks, including TD, are examining Canadian dollar based digital money options, starting with a tokenised deposits project.
The project is looking at tokenised deposit models intended to support responsible innovation and wider participation in the digital money system in Canada.
It is intended to enable faster, more efficient and programmable payments for customers, while maintaining safety, stability and regulatory oversight.
Its first phase is focused on moving tokenised deposits efficiently between Canadian financial institutions. Over a longer period, the project is intended to link with other developing digital asset initiatives.
In addition to TD, the participating banks are Bank of Montreal, Canadian Imperial Bank of Commerce, National Bank of Canada, Royal Bank of Canada, and Bank of Nova Scotia, though other deposit-taking institutions may join later.
