RBC and Cohere partner to develop the next generation of highly secure generative AI solutions for financial services

Rhea-AI Summary

RBC (TSX: RY) (NYSE: RY) has announced a strategic partnership with Cohere to develop 'North for Banking', an enterprise generative AI platform specifically designed for financial services. The collaboration aims to integrate both companies' proprietary foundation models with RBC's internal platforms to create secure and efficient AI solutions.

The partnership focuses on developing more accurate and verifiable models with enhanced risk and security features for the financial services industry. RBC is already implementing genAI technology in its advice center to support advisors and in Capital Markets to enhance research analysts' productivity.

This initiative builds upon RBC's decade-long AI investment and commitment to responsible AI principles. The bank recently ranked #1 in Canada and third globally for AI maturity among 50 global financial institutions in the Evident AI Index, which evaluates institutions across Talent, Innovation, Leadership, and Transparency.

Positive

• Strategic partnership with Cohere to develop proprietary AI platform
• Already implementing genAI solutions in advice center and Capital Markets operations
• Ranked #1 in Canada and third globally for AI maturity

Negative

• None.

Insights

Tech Strategy Expert

This strategic partnership represents a sophisticated move in the financial technology landscape. The development of North for Banking positions RBC at the forefront of enterprise AI adoption in banking, with several critical advantages. The platform's integration with proprietary foundation models creates a unique competitive moat, while the focus on security and risk management addresses the primary concerns that have historically AI adoption in financial services.

The implementation is already showing tangible results in two key areas: customer service optimization through the advice centre and enhanced research capabilities in Capital Markets. These use cases demonstrate a clear path to operational efficiency gains and potential cost savings. RBC's #1 ranking in Canada for AI maturity, coupled with this partnership, indicates a well-executed AI strategy that could translate into sustained competitive advantages in process automation, customer service and data analytics.

Financial Services Analyst

The partnership with Cohere represents a significant strategic investment in RBC's technological infrastructure. The key value proposition lies in the potential for substantial operational efficiency improvements across multiple business units. Early implementations in the advice centre and Capital Markets division suggest promising returns on investment through enhanced productivity and service delivery.

For investors, this initiative signals RBC's commitment to maintaining its technological edge in an increasingly competitive banking landscape. The focus on security and privacy in the AI implementation addresses regulatory compliance requirements while potentially reducing operational risks. The high ranking in the Evident AI Index (3rd globally) validates RBC's technology investment strategy and suggests strong positioning for future market opportunities.

AI Security Specialist

The emphasis on security and privacy in this partnership is particularly noteworthy. Financial institutions typically handle highly sensitive data, making traditional AI implementations challenging. Cohere's enterprise-focused approach, combined with RBC's existing security infrastructure, creates a robust framework for secure AI deployment. The platform's ability to integrate with internal systems while maintaining security protocols is technically sophisticated and addresses a critical gap in the financial services AI market.

The development of verifiable models with specific risk features represents a significant advancement in enterprise AI adoption. This approach could become a blueprint for secure AI implementation in regulated industries, potentially creating additional revenue streams through licensing or partnership opportunities.

TORONTO, Jan. 9, 2025 /PRNewswire/ - RBC (TSX: RY) (NYSE: RY) today announced it has partnered with Cohere, a leader in security and privacy-focused enterprise AI, to co-develop and securely deploy an enterprise generative AI (genAI) solution optimized for financial services. The platform, called North for Banking, will integrate with RBC's and Cohere's own proprietary foundation models, as well as RBC's internal platforms with the goal to accelerate the development of genAI solutions at RBC securely and efficiently. This collaboration leverages the expertise of each organization to develop more accurate and verifiable models, with a focus on risk and security features to protect companies in the financial services industry.

"RBC is on a path to redefine what a bank is capable of, and AI will play an important role in our future success," said Dr. Foteini Agrafioti, senior vice president, RBC Borealis and chief science officer, RBC. "With its globally recognized enterprise AI expertise, Cohere is an ideal partner for us as we build upon almost a decade of AI investment and a strong commitment to responsible AI principles, to continue to innovate and harness the potential of genAI with our clients' safety and security at the forefront."

"We're excited to work with RBC to co-develop North for Banking, a customized version of our new secure AI workspace platform for the financial services industry," said Ivan Zhang, a co-founder of Cohere, "North for Banking will be an end-to-end AI solution that financial industry firms can seamlessly integrate to increase workforce productivity and operational efficiency. By prioritizing security and data privacy protections, companies can have peace of mind as they deploy it internally at scale."

"We are already seeing the positive impact of genAI technology in applications we've put into production, including in our advice centre, where we are using this technology internally to support advisors to answer client questions faster and with greater detail, and in our Capital Markets business, where it's used to enhance productivity and streamline workflows of research analysts," says Agrafioti. "Cohere is unique among its commercial peers in providing the level of flexibility and collaboration that we need to take the next step in our AI journey and increase productivity across the enterprise. We look forward to exploring deployment of this solution in various use cases over the next several months."

RBC recently ranked #1 in Canada and third globally for artificial intelligence (AI) maturity among 50 global financial institutions in the Evident AI Index. The Index scores financial institutions across four key pillars: Talent, Innovation, Leadership and Transparency.

About RBC
Royal Bank of Canada is a global financial institution with a purpose-driven, principles-led approach to delivering leading performance. Our success comes from the 98,000+ employees who leverage their imaginations and insights to bring our vision, values and strategy to life so we can help our clients thrive and communities prosper. As Canada's biggest bank and one of the largest in the world, based on market capitalization, we have a diversified business model with a focus on innovation and providing exceptional experiences to our more than 18 million clients in Canada, the U.S. and 27 other countries. Learn more at rbc.com.

We are proud to support a broad range of community initiatives through donations, community investments and employee volunteer activities. See how at rbc.com/peopleandplanet.

For more information, please contact:
Louise Armstrong, RBC Corporate Communications

View original content to download multimedia:https://www.prnewswire.com/news-releases/rbc-and-cohere-partner-to-develop-the-next-generation-of-highly-secure-generative-ai-solutions-for-financial-services-302346783.html

SOURCE RBC

FAQ

What is RBC's new North for Banking platform and how will it impact operations?

North for Banking is a customized enterprise generative AI platform being developed by RBC and Cohere, designed to increase workforce productivity and operational efficiency while maintaining security and data privacy in financial services operations.

How is RBC (RY) currently using generative AI in its business operations?

RBC is using generative AI technology in its advice center to help advisors answer client questions more efficiently and in Capital Markets to enhance research analysts' productivity and streamline workflows.

What is RBC's (RY) current ranking in AI maturity among global financial institutions?

RBC ranked #1 in Canada and third globally for AI maturity among 50 global financial institutions according to the Evident AI Index, which evaluates institutions on Talent, Innovation, Leadership, and Transparency.

How will the RBC-Cohere partnership enhance security in AI banking solutions?

The partnership focuses on developing accurate and verifiable AI models with enhanced risk and security features specifically designed to protect financial services companies, prioritizing data privacy protections for internal deployment.