Temenos launches AI tools for banking & compliance

Temenos has launched new artificial intelligence tools across its core banking, digital banking and financial crime products, including AI agents, copilots and a conversational design tool.

The new releases cover customer-facing digital journeys, software development, branch operations and instant payment controls.

Among the products introduced is Conversational Studio for Digital, which gives banks a natural-language environment to build end-to-end digital banking journeys. Temenos also unveiled Copilot for Workbench, designed to help developers build, plan and execute custom platform extensions with AI agents.

Another release extends conversational support to branch staff through Copilot for Core for Branch Manager and Branch Officer users. In financial crime prevention, Temenos launched an AI agent for instant payments to apply controls to real-time payment flows.

The latest releases expand Temenos' use of AI within the software systems banks already use for daily operations. The company has been adding conversational interfaces and automated tools to its banking products as lenders look for ways to introduce AI into tightly regulated environments without losing oversight of decision-making and controls.

Barb Morgan, Chief Product and Technology Officer at Temenos, outlined the company's approach. "Banks do not need AI added on top of critical systems. They need intelligence built into the products and workflows they already trust. Rather than introducing a separate AI layer, we are embedding AI responsibly, so banks can automate operations, scale services and innovate safely without compromising reliability or regulatory obligations," Morgan said.

Built-in oversight

The announcement reflects a wider debate in banking over how AI should be deployed in customer service, software development and compliance. Banks have shown interest in generative AI and task automation, but many have been cautious about introducing systems that cannot be clearly audited or governed within existing risk frameworks.

Temenos is embedding AI within its existing platform rather than placing a separate layer over core systems. In banking, that matters because institutions must manage data lineage, track system actions and preserve human oversight in areas that affect customer outcomes, payments processing and financial crime controls.

Sam Abadir, Research Director for Risk, Financial Crime, and Compliance at IDC, said the industry focus has shifted. "In banking, the critical question is no longer whether AI can be applied, but whether it can be governed across data lineage, model behavior, and operational controls. Platforms like those Temenos has introduced that embed intelligence directly into core banking workflows, with clear audit trails and human oversight built in, reflect the architecture production deployments actually require," Abadir said.

Earlier rollout

Temenos has previously introduced AI features into its product line. In 2025, it launched Copilot for Core, which allows users to interact with the system in natural language to support decision-making.

It also pointed to an earlier launch of its financial crime AI agent. According to Temenos, a Tier 1 bank using the tool is processing hundreds of thousands of sanctions screening cases and automating more than 20 per cent of alerts, shifting staff attention to more complex work.

That example offers a practical indication of where banks may first see measurable gains from AI inside operational systems. Compliance and alert handling often involve high volumes of repetitive work, but they also require documented processes and clear escalation paths, making them a closely watched testing ground for AI deployment in financial services.

The addition of a conversational design environment for digital banking also points to a broader shift in how banking software is configured. Natural-language tools are increasingly being used to shorten the time needed to create and adjust customer journeys, although banks will still need to control how those journeys are designed, approved and monitored.

For software teams, the Workbench copilot suggests a similar trend in development functions, where AI tools are moving from standalone assistants into platform-specific products tied to particular systems and workflows. That can help reduce the gap between general-purpose AI models and banks' operational requirements, especially where technology changes must be carefully tested and documented.

Temenos said conversational interfaces can make complex banking functions more accessible to a broader range of users and reduce operational friction. It added that AI agents can increase operational capacity while maintaining auditability and human oversight.