Why AI is the future of banking in Australia

Globally, the pace of change in banking has never been faster. Customer expectations are evolving with Australians increasingly demanding seamless, digital-first experiences. At the same time, regulatory pressures are intensifying and banks are under constant scrutiny to manage risk while driving growth.

With more Australian banks turning to technology for modernisation and transformation, artificial intelligence is emerging as a definitive technology movement. Offering opportunities to optimise operations, enhance customer experience and deliver robust fraud solutions, AI adoption is rising. Banks that don’t take advantage now are not only risking their existing competitive advantage but also their future growth in an increasingly AI-enabled world.

AI is already delivering results in Australian banking

Australia is keeping pace with the global drive towards AI-enabled operations. Banks and financial organisations are deploying AI across the front, middle and back office. From customer service and risk management to fraud detection and operational efficiency, AI is already transforming the way financial institutions operate at every level.

Australian banks are among the leaders in AI adoption, with 83 per cent of executives confirming they are implementing AI within their organisation. In recent months, these commitments have moved beyond abstract ideas, translating into strategic partnerships and use cases:

• CommBank and OpenAI recently announced an Australia-first strategic partnership to explore generative AI-enabled banking services for customers.
• Westpac has piloted an AI-powered call assistant aimed at tackling scams in real-time by analysing live customer calls to identify signs and enable a swift response.
• NAB’s Customer Brain, launched in 2023, is an AI-powered engine that helps the bank provide simple, tailored experiences efficiently for customers.
• ANZ is preparing for the launch of “amie”, a multi-agent chatbot that will provide commercial and institutional bankers with answers to market-related questions.

But momentum isn’t just limited to the “big four”. Challenger banks, digital innovators and FinTechs across Australia are also using AI to disrupt the market and deliver smarter, faster and more personalised services.

• Australia’s digital bank Up and home lending platform Tiimely have been using AI and machine learning to speed up home loan applications.
• Raiz Invest’s AI-driven data analytics and cross-marketing strategy have helped drive a surge in new customers for the micro-investor platform.

The competitive stakes are increasingly clear: move now or risk ceding ground to AI-enabled competitors.

The biggest barriers holding back AI in banking

Despite this progress, AI adoption is not without its challenges. Banks must continually balance innovation with trust and compliance, with regulators watching closely to ensure AI-driven initiatives are responsible, secure and customer-focused.

At July’s ABA Banking Conference in Sydney, ASIC’s chair stated the regulator “won’t hold back customer-centric AI innovation”, but also made it clear that poorly governed AI will face enforcement. Similarly, APRA’s recently released corporate plan for 2025-26 lists assessing the emerging risks associated with the use of AI as one of its priorities.

Internal cultural and technology challenges are equally pressing. In our conversations with CTOs and CIOs across the financial sector, leaders want to move beyond experiments and see real value from AI initiatives, but face major hurdles.

• Fragmented data and limited infrastructure slowing progress and undermining AI’s effectiveness.
• Unclear AI strategies, learning to scattered investments and proof of concepts that fail to move to production.
• Limited funds, a lack of in-house skills, and cultural resistance mean organisations are struggling to keep AI initiatives and other digital transformation projects on track

These challenges are reflected in INFORM Australia’s AI study of banking executives: 46% struggle with siloed data, 27% have unclear AI strategies, while 83% are facing employee resistance to AI.

The path to an AI-enabled bank

AI adoption in Australian banking is accelerating, but the journey is complex and success depends on more than just technology. It requires:

• Clear strategies tied to business outcomes.
• Robust data platforms and governance to ensure trust and regulatory compliance.
• Engineering practices that scale AI responsibly and effectively from proof of concept to production.
• Organisational readiness, with teams supported and skilled for change.

Equal Experts brings extensive experience in both banking and AI, helping organisations move beyond hype and experiments, turning proof of concepts into value-adding software in production. With our experts embedded in your teams, we can guide you through the uncertainty of AI adoption, accelerating delivery while maintaining engineering integrity and building trust from day one.

Learn more about our AI expertise and get in touch to explore how we can help your organisation translate AI potential into real-world impact.

This blog reflects the personal experiences and opinions of the author and it should not be taken as formal Equal Experts methodology.

About the author

Matthew Waugh is Director of Sales and Business Development for Equal Experts APAC. With over 10 years of experience in sales and business development, Matthew is a lead in strategic initiatives that drive growth across the Asia-Pacific region for Equal Experts. He is also a Volunteer Mentor with LaunchPad Academy, Founder of Conexie and was named in the Australian Business Elite Awards’ “40 under 40” list for 2023. Matthew is also a firefighter, rugby player, certified ScrumMaster® (CSM®) and an AWS Certified Cloud Practitioner. Contact Matthew on LinkedIn.