Five months ago, I published a blog post about banking’s new power role: the chief digital, data, and AI officer. This is an executive mandate designed not just for a simple consolidation for efficiency but to unify digital, data, and AI around a single strategic vision for growth, decision-making, and transformation.
Commonwealth Bank of Australia (CommBank) has taken a related — but different — approach. In June 2025, the bank appointed Dr. Michael Baumann as the executive general manager of customer, digital, and AI. I spoke with Dr. Baumann to understand the thinking behind this integrated role, how it’s shaping CommBank’s digital strategy, and what it means for the future of banking.
Q: Dr. Baumann, your role combines customer, digital, and AI leadership. Why have you brought these functions together?
Absolutely. It’s a unique combination but one that makes strategic sense. Our goal is to create exceptional CX. As generative AI (genAI) advancements continue to accelerate, we’re seeing digital and AI naturally converge. Data powers AI, so having data, digital, and AI closely aligned is critical. And then there’s the customer: Everything we do is for them. By bringing these functions together, we’re making sure that our technology and innovation efforts are always aligned to our customers’ needs.
Q: Tell us how AI is being integrated into your digital experience and CX.
We’re already seeing that 99% of our retail customer interactions are digital, so the foundation is there. The next step is making those interactions more conversational and intuitive. I imagine a future where customers don’t have to call us or navigate menus. Instead, they can just talk to a virtual agent in the app or even through a smart speaker. It’s about creating a seamless, natural experience.
Of course, we’re not flipping a switch overnight. Trust is everything in banking, so we’re introducing these capabilities gradually. We’re proud of the security features within our app, and we know that our customers appreciate us for that. We want to build on that trust as we roll out more automation and AI-driven features.
That said, we’re very conscious of the risks. GenAI is still new, and we need to implement it safely, especially in customer-facing experiences. It’s critical that customers get what they need, when they need it, and that we avoid misinformation or confusion; so we’re taking a step-by-step approach, with strong governance built in from the start.
Internally, we’re also using agentic AI to streamline operations — things like onboarding, compliance, and customer support. It’s all about making things faster, smarter, and more helpful.
Q: What kind of organizational structure and technical architecture supports this integrated approach?
Collaboration is key. I report to Angus, our group executive for the retail bank, and I oversee digital, our retail data science and data office teams, as well as strategy and ESG. We work closely with the group data office, even though it sits separately in our technology team.
We’re also investing heavily in our data platform and metadata architecture. Having the right infrastructure is essential to enabling AI and genAI at scale. And on a day-to-day level, I work closely with product teams, channel leads, engineers, designers, data scientists, and analytics folks. It’s a very cross-functional environment and nothing happens in isolation.
Shortly, we will welcome a chief AI officer to the organization. This is a role that will complement mine, as we’re both focused on AI but from different angles. The chief AI officer helps drive enterprisewide AI strategy and governance, while I focus on how AI is applied within the retail bank to improve CX. It’s a great example of how we’re aligning leadership across the business to make AI a core capability.
Q: What contributes most to the success of this function?
People, without a doubt. Technology is important, but it’s the people and their mindset that really drive outcomes. We don’t have a separate innovation lab — innovation is everyone’s job. The teams working on real customer problems are the ones experimenting with AI. Some move faster than others, and that’s OK — it’s an organic process.
We also run an “AI for all” program across the bank that gives everyone access to tools and training. Not every problem needs to be solved with genAI, but it’s a great way to challenge assumptions and encourage new thinking. We want people to feel empowered to try things, experiment, and learn.
And more broadly, we’ve seen that when you bring digital, data, and AI together under one roof, you eliminate silos. That means faster decision-making, better alignment, and more cohesive execution. It’s a big part of why this model works.
Q: How are you tracking progress to ensure that initiatives deliver impact?
We focus on outcomes that matter to customers. One of our key goals is to reach “NPS + 30” — a top-tier Net Promoter Score℠ (NPS). We’re also looking at how to improve the CommBank app experience, how widely new digital features are being adopted, and whether we’re solving real customer problems.
Additionally, we track progress with customer feedback, interaction scores (where customers rate their experience at different points), and by monitoring complaint reduction. These give us a clear picture of where we’re doing well and where we need to improve.
We’re not innovating just to be flashy. If we can help customers reduce stress, feel more confident, and improve their financial well-being, then we know we’re on the right track. And when we do right by our customers, the business outcomes tend to follow.
Conclusion
Q: As financial services firms accelerate their push toward AI, what should leaders keep in mind?
First, ensure that your organization is operationalizing AI at scale, rather than creating one-off solutions. Second, upskill employees, evolve roles, and foster collaboration. Third, improve experiences more holistically across touchpoints, not just on digital touchpoints.
If you would like to learn more, I’d love to chat! Forrester clients can use this link to schedule a guidance session.
Cowritten with Janis Teo, senior research associate
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