TORONTO, May 21 (Reuters) - Royal Bank of Canada's ( RY )

capital markets wing has established a new artificial

intelligence and digital innovation team as it bets on AI to

boost future growth, the Canadian lender told Reuters on

Wednesday.

The team, with hubs in New York, Toronto and London, will

report to newly appointed Chief Strategy and Innovation Officer

Lindsay Patrick.

RBC also appointed Bobby Grubert as head of AI and Digital

Innovation, reporting to Patrick. Grubert worked on Aiden, RBC's

first generative AI solution, and RBC Elements, its data-powered

research capability.

The new team will be formed by appointing talent from across

RBC's global market business, the lender said.

RBC in March said it expects to earn up to about C$1 billion

($722.02 million) from its AI investments, emphasizing the

pivotal role the technology will play in the largest Canadian

bank's next growth phase.

CEO Dave McKay told investors in March that the bank's

technology has received positive responses from the likes of

chipmaker Nvidia's ( NVDA ) CEO, Jensen Huang, and that the

lender is betting on AI to speed up training, streamline

processes and more.

RBC's capital markets head, Derek Neldner, noted that the

unit has been scaling and leveraging Aiden, RBC's GenAI solution

developed in partnership with research institute Borealis, for

electronic trading, automation of front-to-back operations and

data-driven research and insights.

AI is becoming a key tool for banks globally, which are

using it to streamline customer communications, process

documents, spot fraudulent activity and automate other mundane

tasks.

Rival Bank of Montreal ( BNKD ) also named a chief AI and

data officer, while other banks have said they are making

investments to boost their capabilities.

($1 = 1.3850 Canadian dollars)