BNY Mellon, formerly Bank of New York Mellon, is collaborating with OpenAI to incorporate the tech company’s artificial intelligence tools into its services. This multiyear agreement, reported by The Wall Street Journal, grants BNY access to OpenAI’s AI resources, including Deep Research. The goal is to bolster BNY’s existing AI platform, Eliza.
For OpenAI, the partnership provides an opportunity to gather insights into the practical application and performance of its AI models in complex, real-world banking scenarios. According to Sarthak Pattanaik, head of BNY’s AI hub, the bank views AI as a “transformational” technology that will become integral to all its products and services.
Banks are rapidly adopting AI, leading to substantial investment in AI patents and talent recruitment, the report noted. Brad Lightcap, OpenAI’s Chief Operating Officer, highlighted the banking sector’s desire to streamline operations, an area where AI integration is expected to yield significant efficiencies. OpenAI already has similar arrangements with financial institutions such as Morgan Stanley and Klarna.
The collaboration with BNY also allows OpenAI to partner with a financial institution already advanced in its AI initiatives, given BNY’s launch of Eliza last year. Generative AI has attracted attention as a tool that could reshape the banking industry, presenting opportunities for improved efficiency, enhanced security, and elevated customer satisfaction. PwC, in a recent report, suggested that this technology could streamline processes, improve cybersecurity, and enable personalized banking services, while also impacting loan processing, fraud detection, and risk management.
A recent PYMNTS Intelligence report titled “Is AI the Master Key to Banking’s Next Era?” revealed that almost three-quarters of finance leaders are already utilizing AI in their operations, with applications ranging from fraud detection to customer onboarding automation. Financial institutions are eager to incorporate generative AI given that nearly all banking boards have supported such initiatives. The report further noted that “leaders view AI as a tool for efficiency and a way to create hyper-personalized customer experiences, a critical factor as 50% of retail banking consumers are not satisfied with their current banking options.”
This shift indicates a significant turning point where banks must adapt or risk being overshadowed by technology-driven competitors.
