Royal Bank of Canada (RBC, RY.TO) is set to generate C$700 million to C$1 billion from its AI investments by 2027, CEO Dave McKay revealed at the bank’s first investor day since 2018. The revenue will come from business growth and technology cost savings, underscoring AI’s crucial role in RBC’s expansion strategy.
AI-Driven Innovation
McKay highlighted how generative AI can enhance employee capabilities, improve customer service, and automate key processes. RBC is utilizing Nvidia (NVDA.O) chips to create AI-powered avatars capable of engaging personal banking clients and offering product insights.
Growth Targets & Market Expansion
Despite trade uncertainties and potential tariff disruptions, RBC remains committed to achieving a 16% return on equity by 2027. The bank aims to:
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Expand globally in capital markets and wealth management
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Increase its U.S. market share, competing with Wall Street giants like JP Morgan
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Strengthen personal banking and wealth segments in Canada
Challenges Ahead
RBC executives acknowledged that tariff-related uncertainties may slow corporate investment. However, they emphasized that long-term growth strategies remain unchanged.
RBC’s stock was down 0.9% in Toronto during afternoon trading.
