The Commonwealth Bank of Australia (ASX: CBA) share price is marching higher today.
Shares in the S&P/ASX 200 Index (ASX: XJO) bank stock closed yesterday trading for $142.99. In morning trade on Tuesday, shares are swapping hands for $143.239, up 0.3%.
For some context, the ASX 200 is up 0.3% at this same time.
This comes amid news Australia's biggest bank has activated its AI Factory.
image source: Getty Images
ASX 200 bank charges ahead in AI revolution
The CBA share price could enjoy longer-term support after the company announced it took "a monumental step forward" in its AI adoption path after activating its AI Factory in collaboration with Amazon Web Services (AWS).
AWS is a subsidiary of Amazon.com, Inc. (NASDAQ: AMZN).
CBA said it is now positioned to accelerate the adoption of generative AI across its business.
Among the critical application, CBA said its AI Factory will enable engineers to more rapidly and efficiently fine-tune and train AI large language models (LLMs). That's part of CommBank's plan to leverage AI for enhanced customer experiences and operational efficiency.
And it could lead to sizeable cost savings down the road, with automated chat apps like Hey CommBank potentially replacing human call centre operators.
Commenting on the AI Factory progress that could offer sustained tailwinds for the CBA share price, chief data and analytics officer Andrew McMullan said, "The collaboration with AWS marks a significant milestone in our commitment to driving digital innovation to deliver better customer outcomes and experiences, more quickly."
McMullan added:
By leveraging AWS's cloud infrastructure and latest AI capabilities, the AI Factory is set to accelerate the bank's development time for AI-powered initiatives by around four times compared to our current rate.
McMullan noted that the AI Factory would enable CBA to keep pace with the technology's rapid evolution.
"The technology is advancing quickly, and we need the right infrastructure in place to support our strategic goal of building tomorrow's bank today for the benefit of our customers," he said.
Jamie Simon, director of financial services at AWS Australia and New Zealand, added:
AWS has a long-standing relationship with CommBank, and the AI Factory is the latest example of our collaborative efforts to leverage AI, ML [machine learning], and generative AI across the bank, to more rapidly identify customer insights that can be used to tailor more personalised experiences, streamline and improve customer interactions, and increase operational efficiency, creating a competitive edge.
CBA share price snapshot
The CBA share price has been a strong performer over the past year, up 40% over the 12 months.
