Three top Canadian banks shine in a new global AI innovation ranking, highlighting impactful patents
Canadian banks have secured prominent positions in global artificial-intelligence innovation, with the Royal Bank of Canada, Toronto-Dominion Bank, and Bank of Montreal ranking third, sixth, and ninth, respectively, as reported by The Globe and Mail.
This ranking comes from a report by Evident Insights Ltd., which evaluated the AI contributions of the world's largest 50 banks from November 2023 through March 2024. The criteria included the volume and quality of AI-related research papers, patent filings, and investments in AI startups.
Evident's CEO, Alexandra Mousavizadeh, expressed surprise at the high rankings of Canadian banks, attributing their success to a robust approach to research and patents in AI.
She emphasized the significance of centralized research capabilities and the impact of patents on the development of AI banking tools globally. Notably, RBC's patents received 2.7 times more citations per patent than the index average, highlighting their influence in the AI space.
BMO has seen the largest increase in average AI patent citations among the banks indexed over the last five months. Lawrence Wan, BMO’s chief architect and innovation officer, shared the bank's strategy of focusing resources on areas of strength to innovate effectively.
The investments made in AI have already resulted in consumer benefits. For instance, BMO's mobile app features an AI-driven alert for potential negative balances, and TD has incorporated “digital nudges” since 2020 to enhance customer service across various lines of business.
RBC's Borealis AI research institute has developed capabilities for the NOMI platform, including a service that predicts bill payment errors.
Despite these achievements, Canadian banks scored lower in investments in AI-related startups. TD's significant investment in Layer 6 Inc. in 2018 is mentioned alongside a note that external AI investments have been minimal since then.
However, support for AI innovation continues, as illustrated by TD's backing of Tomi Poutanen’s new venture, Signal 1 AI Inc.
Foteini Agrafioti of RBC (Royal Bank of Canada) attributed the banks' success in AI innovation to the academic foundations of their work, noting the influence of scientific research on their impactful patents.
This blend of academic rigor and practical application underscores the significant role Canadian banks play in advancing AI in banking globally.
