AI Adoption Soars in Banking, but ROI Pressure Mounts, Report Shows
Canadian banks continue to rank among the world’s most advanced financial institutions in AI adoption, but lenders are racing to demonstrate that the billions of dollars spent on the new technology is translating into financial returns.
AI benchmarking platform Evident ranked Canada’s five biggest banks in the top 30 of a list of 50 global financial institutions on talent, innovation, leadership and transparency. AI adoption and deployment is accelerating at superspeed, but lenders will need to start showing that their AI investments are benefiting their bottom lines, according to Evident’s report released Tuesday.
Royal Bank of Canada RY-T ranked third globally for the fifth consecutive year as it continues to translate its AI research into capabilities that can be deployed across the company, spanning technical delivery, adoption and controls, Evident said.
“RBC maintained its position among the world’s leading banks for AI in an increasingly competitive environment, thanks to its strengths in innovation,” Evident co-chief executive Alexandra Mousavizadeh said in a statement.
“Boasting one of banking’s most established research capabilities, RBC is spreading its increasingly sophisticated AI capabilities across the bank.”
Toronto-Dominion Bank TD-T edged up three spots to rank 10th as it increasingly deploys its AI research, tools and applications in measurable ways, and focuses investments on high-impact areas, including credit adjudication, software development and contact centres, according to the report.
Bank of Montreal BMO-T ranked 20th overall and second for adopting responsible AI principles, CIBC CM-T took the 21st spot, and Scotiabank BNS-T landed in 30th place.
U.S.-based financial institutions took the top two spots, with JPMorgan Chase JPM-N, the world’s largest bank, ranking first and Capital One Financial Corp. COF-N placing second.
AI deployment in the banking sector has accelerated more dramatically in the past year than at any point since Evident launched the ranking in 2023, the firm said.
Canada’s banks have long touted the efficiency benefits of AI tools, but they have only just started generating revenue from their AI investments and senior executives are rethinking staff roles and implementing training to entice employees to adopt the new technology.
Many lenders have yet to report results from productivity tools, according to Evident.
About 1 per cent of financial institutions disclosed direct financial results, such as cost savings, according to Evident. Of the 50 banks that were ranked, only 12 reported a realized or projected return from AI activities, up from eight lenders last year.
Among the top two banks, JP Morgan has disclosed its expectations for the financial benefits AI is expected to generate. In 2025, the bank cited about US$1.5-billion in realized value.
Capital One has yet to report a company-wide estimate of the value generated by artificial intelligence, even as it has touted AI as a key factor in its technology transformation plan.
Canada’s banks have been making headway. At RBC’s investor day last year, the bank said it expects to generate between $700-million and $1-billion in enterprise value from AI by 2027.
RBC remained on track in its fiscal third quarter, ended July 31, and cited more than 200 AI models and a more than 500-per-cent increase in large language model (LLM) token consumption – units of computing power that cost money – as an indication that deployment is accelerating, Evident said.
In 2025, TD told investors it set a target of generating $200-million in annualized revenue productivity and $100-million in annualized cost savings in the medium term, Evident cited in its report.
In the first nine months of fiscal year 2026, the bank has generated $195-million in AI value against its $200-million goal. TD boosted its medium-term target value to $500-million in both revenue and cost savings, Evident said.
At BMO’s investor day in March, the bank said it expects AI to add more than $1-billion in pre-tax earnings by 2030.
This article was first reported by The Globe and Mail
