Vanguard and the University of Toronto have signed a strategic research partnership to promote the development of AI solutions in the financial services industry.

The American asset manager said it will collaborate with the University's computer science department to advance AI research and innovation by tapping into its world-renowned AI and machine learning programme.

As part of the partnership, the department will establish several labs including professors, postdoctoral fellows, and students who will collaborate with Vanguard's existing AI research team based in Toronto.

The project will initially focus on developing knowledge to ensure ethical and transparent use of AI, developing AI systems that can understand and interact with humans more naturally.

It will also look at creating AI systems that can make autonomous decisions and adaptive frameworks for training large language models to boost performance and reliability.

Nitin Tandon, managing director and chief information officer at Vanguard said: “This collaboration will not only enhance our capabilities to better serve investors with top-tier expertise and resources but also contribute to the broader field of AI, ultimately benefiting our clients and industry.”

Kathy Bock, managing director and head of Vanguard Investments Canada, said the initiative will expand Vanguard's AI team in Toronto to 90 roles, as well as provide internship opportunities for University of Toronto students.

“This programme will include co-creating research papers, jointly participating in and hosting meetings, seminars, conferences and recruitment initiatives for research projects,” she added.

Eyal de Lara, professor and chair of the Department of Computer Science at the University of Toronto, said that the initiative also aims to provide valuable hands-on opportunities for students and faculty to work on real-world projects, contributing to Toronto's status as a global hub for AI research and innovation.

Vanguard Investments Canada currently manages $96 billion in assets, with Vanguard Group currently managing around $10 trillion in global assets.

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