Commonwealth Bank of Australia (ASX:CBA) has allocated $250,000 for an AI start-up that can enhance its customer service and employee experience. The bank has opened applications for its Xccelerate program under its x15ventures fund, targeting pre-series A start-ups for funding and potential partnerships.
CBA joins the ranks of tech giants like Amazon (NASDAQ:AMZN) Web Services (AWS) and Google (NASDAQ:GOOGL), which have launched AI accelerators and mentoring programs in Australia. AWS and Google offer cloud credits valued at US$1 million (A$1.48 million) and US$350,000 respectively, while CBA's incentive is a cash prize.
Laura Faulconer, portfolio director at CBA’s x15ventures, noted the significant interest last year, with over 70 start-ups participating. Pairtree Intelligence, an AgTech integrator, secured the previous $250,000 investment and formed a strategic partnership with CBA for agricultural services. Additionally, automotive platform Vyro achieved a partnership with CBA through the program.
Although only one start-up will receive the funding, 15 to 20 start-ups will join a mentoring program in September. Faulconer highlighted the program's aim to attract early-stage founders seeking strategic partnerships with corporations like CBA to scale their businesses. She expects this year's program to be the best yet, with over 600 early-stage AI and data start-ups in Australia.
CBA chief data and analytics officer Dr Andrew McMullan emphasised the importance of AI in the bank's strategy to stay ahead of the curve. He said, “AI and data are and will continue to be key enablers of Comm Bank’s strategy to build tomorrow’s bank today.
"While Comm Bank is already recognised as a leader in AI maturity, it’s still early days and we know the biggest opportunities for innovation lie ahead of us.”
AWS’s Generative AI Accelerator
AWS recently enhanced its Generative AI Accelerator with a US$230 million (A$346 million) investment to support 80 early-stage start-ups. Australian start-up Leonardo.AI, a former participant, raised $47 million in December from investors including Blackbird and Samsung (KS:005930) Next. John Kearney, AWS Australian head of start-ups, said the focus was on local start-ups and gaining early exposure to investors.
Google’s AI Accelerator
Google’s AI Accelerator targets seed and series A stage start-ups building AI and machine learning platforms. Applications for the accelerator close on July 31, and between eight and 15 start-ups will be selected for a 10-week program providing assistance in product design, customer acquisition and technical support.