Critical Perspectives: AI in Australian Banks

March 26, 2025

Australia’s major banks — ANZ, CBA, NAB, and Westpac — are no longer just experimenting with artificial intelligence. Our new research report shows how AI is now being deployed across the enterprise, powering everything from customer interactions to fraud prevention, software engineering, and lending.

Our latest Industry Spotlight draws on data from January 2023 to February 2025 and reveals five major themes driving AI innovation in Australian banking:

From Scam Detection to Identity Assurance

AI in fraud prevention is maturing rapidly. Behavioural biometrics, machine learning, and generative AI are being used not only to monitor transactions but also to identify fraud patterns, detect deepfakes, and block scams in real time. Initiatives like CBA’s partnership with Quantium Telstra and Westpac’s launch of SaferPay demonstrate strong industry momentum.

Generative AI as a Multi-Domain Enabler

Banks are integrating large language models (LLMs) to enhance customer and staff experiences. CBA had over 50 GenAI use cases live already by early 2024 — including internal tools like ChatIT and CommBank Copilot — while ANZ and Westpac are training frontline staff and building conversational banking capabilities.

AI-Powered Software Engineering

Banks are embedding AI directly into their development pipelines. Even in 2023, Westpac had already reported a potential for a 46% boost in developer productivity using AI agents and tools like GitHub Copilot, while ANZ noted that over 7% of its code is now AI-generated towards the end of 2024. This shift signals the start of a more autonomous engineering future.

Smarter Lending and Treasury Decisions

AI is being used to assess borrower risk in real time and forecast liquidity. NAB and Westpac are leveraging partnerships with fintechs like Trovata and Rich Data Co to deploy explainable AI in lending and automate cash management functions.

Governance, Skills, and Strategy Alignment

Technology alone isn’t enough. Banks are investing in organisational readiness — with CBA’s “AI For All” learning series and ANZ’s AI Immersion Centre designed to upskill leadership and embed AI responsibly at scale.

This research shows a clear shift: AI is now a foundational capability across Australian banks. To learn more and access the full report click here: https://distinctiveinsights.ai/product/ai-in-australian-banks-industry-spotlight/