Royal Bank Of Canada Bets Big On Artificial Intelligence

In my recent series on artificial intelligence for smarter investing, one of the key themes is the importance of collaboration between computer programmers and financial subject matter experts. Most efforts to use AI in finance fail because programmers don't understand the financial data while the financial experts don't understand technology. Not only has this bank made concrete efforts to foster collaboration between programmers and financial experts, its CEO has experience in both fields. These efforts are already improving profitability and efficiency, which when combined with a cheap valuation make Royal Bank of Canada (RY) this week's Long Idea. Technological advancements – especially in the field of artificial intelligence – are going to be the primary driver of competitiveness and profitability among financial institutions in the coming years. As I wrote about in my article "Big Banks Will Win the Fintech Revolution", virtually all the major financial institutions have publicly recognized the importance of investing in technological innovation.