BMO Financial Group has announced the launch of a new enterprise-wide “centre of excellence” focused on the responsible development and governance of AI and quantum technologies.

The Canadian banking group said the BMO Institute for Applied Artificial Intelligence & Quantum will bring together expertise across data science, governance, ethics and commercialisation to accelerate adoption of AI and develop quantum capabilities across the organisation.

The institute will focus on responsible innovation and governance of the technologies. It will also support the deployment of AI-driven tools to enhance client experience, improve operational efficiency and drive long-term growth.

BMO said the initiative reflects growing interest among banks in combining AI with quantum computing research to prepare for future advances in optimisation, risk modelling and cryptography.

As part of the launch, the bank has appointed Dr Kristin Milchanowski, who has worked at the bank since 2024, as chief AI and quantum officer and founding director of the institute. In the role, she will oversee enterprise-wide strategy for both technologies and support governance frameworks for responsible adoption.

BMO said it has used AI across the business for decades for tasks including personalisation, automation and analytics. The new institute intends to coordinate these efforts while preparing for emerging quantum applications. The bank added that the initiative will also support collaboration across technology, policy and risk teams.

“BMO is committed to building AI and quantum capabilities that are innovative, trusted and centred on our clients,” said Steve Tennyson, chief technology and operations officer at BMO. “AI is accelerating how we build, modernise and innovate across the bank and the institute will strengthen our ability to turn leading edge technologies into meaningful value for BMO clients, while maintaining the discipline required to manage risk, operate at scale and support responsible adoption across global banking.”

The launch builds on recent investment in advanced computing by the bank. BMO recently joined the IBM Quantum Network, becoming the first Canadian bank to participate in the programme. The network provides access to quantum hardware and research resources designed to accelerate experimentation with quantum algorithms and hybrid AI-quantum workflows.

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