TD Bank Unlocks $141 Million in AI Value Months Ahead of Schedule

TD Bank Group delivered 195 million Canadian dollars (about $141 million) in artificial intelligence value in the first three quarters of its fiscal year 2026, according to a third-quarter earnings presentation released Thursday (Aug. 27).

The move puts the company ahead of the pace needed to reach its fiscal year target of 200 million Canadian dollars (about $144 million), the presentation showed.

The pace also moves TD Bank Group closer to its medium-term target AI value of 500 million Canadian dollars (about $361 million) in annualized revenue uplift and 500 million Canadian dollars in annualized cost savings, per the presentation.

TD Bank Group initially outlined this goal at its September investor day, saying it aims to achieve a total of 1 billion Canadian dollars (about $722 million) in value from AI over the medium-term by deploying predictive, generative and agentic AI.

During a Thursday earnings call, Raymond Chun, group president and CEO, TD Bank Group, said: “Importantly, each of these key transformation initiatives is intended to drive financial performance while enhancing the client and colleague experience. Three-quarters into the year, we have essentially hit our fiscal 2026 target of 200 million [Canadian dollars] in value from AI. We expect to extract further value through the remainder of the year across predictive, generative and agentic AI use cases.”

TD Bank Group is focusing its AI investment on three key transformation initiatives, including retail end-to-end credit, the software development cycle and contact centers, according to the presentation.

Chun said during the call that the bank is scaling AI in the credit journey to streamline application submission, automate document review and accelerate decisions.

In software development, the bank is using AI to build and deploy software faster, improve productivity and accelerate the delivery of new capabilities across the bank, the presentation showed.

In contact centers, it is using AI to simplify routine client interactions and provide colleagues with tools and insights that help deliver better client experiences, per the presentation.

“TD is accelerating its leadership in AI,” Chun said during the call. “The bank is increasingly emphasizing AI opportunities that transform end-to-end experiences, drive lower unit costs and are scalable across the enterprise.”

Chun also highlighted AI uses cases in other parts of TD Bank Group’s business.

“TD Insurance leads the Canadian industry in the scaled deployment of AI-powered vehicle damage estimation for auto claims, simplifying and accelerating repairs for our clients,” Chun said.

For the bank’s client-facing colleagues, he said: “We continue to innovate to make TD simpler and faster. We have scaled [generative] AI knowledge management solutions across Canada with over 20,000 client-facing colleagues now supported by these capabilities.”

And for TD Auto Finance Canada, he said: “We have automated approximately one-third of the manual processes in funding and launching digital income verifications to deliver credit decisions faster.”

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