Artificial intelligence (AI) and machine learning are playing a key role in TD Bank Group’s “top priority” U.S. anti-money laundering (AML) remediation program, executives said Thursday (February 26) during the bank’s Q1 2026 earnings call.
TD Bank continued to make progress on this program during the quarter and launched a new know-your-customer (KYC) platform for business users this month, Leo Salom, group head of U.S. Retail for TD Bank Group and president and CEO of TD Bank, said on the conference call.
This will provide a centralized platform to collect and maintain customer information, providing better customer insights to support the bank’s AML program, Salom said.
“Additionally, as we have previously discussed, we continue to work on developing additional AI and machine learning capabilities,” Salom said on a conference call Thursday. “Last year, we introduced machine learning models in our transaction monitoring system. Additional models will be introduced into our program over the next few quarters. Finally, we introduced an enhanced data-driven financial crime risk assessment methodology, which now allows us to better assess banks’ financial crime risk.”
TD Bank Group and several U.S. regulators and authorities announced in October 2024 that the bank and certain U.S. subsidiaries have entered into plea agreements, agreeing to orders related to the investigation of the U.S. Bank Secrecy Act (BSA) and AML programs.
Raymond Chun, group president and CEO of TD Bank Group, said in a conference call that the bank is making progress toward its goal of achieving C$1 billion (approximately $731 million) in AI value over the medium term across its operations.
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TD Bank outlined this goal in a presentation to investors in September, saying it aims to deliver C$500 million (approximately $365 million) in annual revenue growth and C$500 million in annual cost savings through AI over the medium term. This program includes predictive, generative, and agentic AI.
Chun said Thursday that the bank is accelerating AI adoption and reducing delivery costs by scaling the technology through repeatable patterns as part of its “build once, use many” AI strategy.
TD Bank introduced a generative AI knowledge management solution in its contact center last year and has since rolled it out to more than 1,000 branches in Canada.
“Questions that previously required colleagues to jump across screens can now be answered in seconds,” Chun said.
The bank also introduced an agent AI solution to simplify the pre-qualification process for real estate secured loans (RESL).
“This provides the foundation for widespread agent AI deployment across RESL and other businesses,” said Chun.
Kelvin Vi Luang Tran, group president and chief financial officer of TD Bank Group, said in a conference call that AI is supporting the bank’s efforts to achieve cost savings of more than C$2.2 billion to C$2.5 billion (approximately $1.6 billion to $1.8 billion) annually.
“AI can help drive these savings as we scale to repeatable patterns, driving faster adoption and lower delivery costs,” said Tran.
