M&T Bank is tapping Microsoft for its AI solutions due to the tech giant’s maturity, expertise and ability to access robust information. 

“What we need is a large, complex organization that is used to delivering complex technology into other complex organizations,” Chief Data Officer Andrew Foster told FinAi News.

For the purposes of generative AI, Microsoft Copilot was the obvious choice considering the Buffalo, N.Y.-based bank’s existing relationship with the tech giant, its ability to tap Microsoft 360 and access necessary information, Foster said. 

Generative AI is only as effective as the large language models it can tap into, he said. Microsoft Copilot, for example, can access the bank’s Microsoft 365 suite and all that entails, including Teams. 

Today, the $210 billion M&T has deployed Microsoft Copilot to 17,000 people and across functions including call centers and coding, he said. 

Opportunity for niche tech

While the bank initially leaned on its established partnership with Microsoft to start its gen AI journey, there is likely opportunity to collaborate with up-and-coming startups for more niche gen AI applications, Foster said. 

But to start, Microsoft allowed M&T to approach the technology in a way that supported education and security, he said. 

Additionally, bankwide, M&T continues to invest in technology infrastructure, evidenced by its third quarter earnings. Noninterest expenses, including outside data processing and software costs and enhancements to the company’s technology infrastructure, cybersecurity, and financial record-keeping systems, increased $60 million, or 5% year over year. 

Further application

With the foundation set, further gen AI deployment is on the horizon at the bank, Foster said.  

In fact, the chief digital officer is in the process of meeting with business unit leaders across the bank to understand business imperatives for 2026 and 2027, with AI in mind. 

The conversation with senior leaders is not how do you want AI deployed, but rather what are you solving for, Foster told FinAi News.  

“Once I understand that, the partnership is great,” he said. 

“What’s going to be really exciting in 2026 and 2027 is seeing the comingling of business imperative with data and AI support,” Foster said. 

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— Additional reporting by Vaidik Trivedi