Irvine-based Commercial Bank of California (CBC) is collaborating with California State University, Fullerton (CSUF) to explore how artificial intelligence (AI) can enhance its banking operations. This month, the bank and CSUF’s College of Business and Economics launched an internship at CBC. This program aims to place AI-trained business students to identify applications where AI can automate workflows and improve efficiency within the bank. Ash Patel, chairman, chief executive, and president of CBC, noted that "The banking industry is very ripe for innovation and disruption."
CBC's adoption of AI aligns with a growing national trend, as 24% of U.S. businesses report using AI, with another 28% anticipating adoption within six months, according to 2026 U.S. Census Bureau data. However, many employees indicate a lack of necessary training for effective AI use. Addressing this talent gap, Dr. Sridhar “Sri” Sundaram, dean of CSUF’s business college, stated that employers consistently seek talent capable of leveraging AI. He affirmed the university’s commitment to ensuring its students are AI-literate.
The pilot program is set to continue through February, with potential plans for expansion into other industries if it proves successful, Sundaram indicated. Under the program’s structure, CBC is responsible for its governance, while CSUF handles student recruitment, faculty supervision, and specialized AI training. Students are focusing on identifying AI applications across various banking departments, including lending evaluations, fraud detection, Bank Secrecy Act compliance, and information technology services for customer service. Patel suggested AI could accelerate routine tasks, such as analyzing financial statements and opening accounts, which would deliver services more swiftly to customers. He emphasized, "Banking is about personal relationships, which you can’t automate," but stressed the ability to automate the processes involved.
Given the sensitive nature of customer information in banking, the program operates with strict safeguards. Students are prohibited from entering confidential customer data into public AI systems, and all practice exercises use fictional or approved sample scenarios. CBC intends to utilize a controlled AI environment to safeguard information and mitigate the risk of systems operating beyond their intended instructions. Patel underscored this cautious approach, noting that their large language models are closed loop and that they are very protective about information security, aiming to be conservative and utilize AI with a keen eye. Beyond operational improvements, the pilot also offers a potential recruiting pipeline for CBC, allowing students who develop promising solutions to transition from internships to part-time or full-time roles upon graduation.
This collaboration builds upon an established relationship between Commercial Bank of California and CSUF that spans more than a decade. The late Paul Folino, a former CBC chairman, was a significant CSUF supporter, notably organizing the Folino Invitational golf tournament. This event successfully reestablished men’s and women’s golf at CSUF after a two-decade hiatus, raising over $2 million, including $1 million for an endowment for the Titan golf programs. Ash Patel also holds a position on the business college’s dean’s advisory board, where discussions with Sundaram led to this AI initiative. The college previously launched an AI hub, partially funded by a $400,000 grant from the National Science Foundation, under the leadership of Amir Dabirian. Sundaram explained that Patel learned of the hub and recognized a great opportunity for joint efforts.
CSUF’s College of Business and Economics continues to grow, serving nearly 10,000 full-time undergraduate students. The college is also set to relaunch its Professional MBA program next fall, a two-year, cohort-based program designed for experienced managers and emerging leaders. With nearly 500 students currently in the MBA program, Sundaram highlighted efforts to update the program for relevance. Key changes include a hybrid schedule, bringing students to campus every other Saturday, and a $60,000 tuition that will encompass a one-week international study trip, guest speaker series, and additional support services. The college anticipates a cohort of 25 to 30 students annually. Further expanding its facilities, the college is preparing to open a new $27.5 million building for business leadership next April or May. This 20,000-square-foot facility, known as the Landmark Building, will house the Institute for Leadership Studies and the Giles-O’Malley Center for Leadership.
