In June 1967, the world’s first “automated teller machine” or “ATM” was unveiled at a branch of Barclays Bank in north London in a grand ceremony.

That very first system looked a bit different to the one we know and use today. But almost six decades later, it’s hard to imagine a world where people could only withdraw cash during banking hours.

Now, in Australia and around the world, banks are placing enormous bets that a new kind of automation will transform their business model: artificial intelligence (AI).

On Monday, Bendigo Bank announced it had signed a multi-year agreement with Google to use the tech giant’s Gemini Enterprise AI platform to assist with a range of tasks, including assessing loan applications and detecting fraud.

It follows a major deal between Commonwealth Bank and OpenAI, announced in August, to “bring advanced AI to customers and employees”.

What does the future of banking hold – and who is responsible for managing the risks?

Banks have already been quietly deploying AI tools over many years to help with a range of tasks. If you have engaged with a chatbot recently, you have more than likely engaged with AI.

Currently, AI is helping banks and employees make decisions. It is scanning for fraud and scams, assessing credit scores, supporting trading and investment activities, and handling........

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