Irvine Bank Partners with CSUF to Pilot AI Integration in Banking Operations

Commercial Bank of California, headquartered in Irvine, has partnered with California State University, Fullerton (CSUF) to explore how artificial intelligence (AI) can enhance its banking operations. This month, the bank initiated an internship program with CSUF’s College of Business and Economics, placing AI-trained business students within CBC to identify areas where AI can automate workflows and improve efficiency.

Ash Patel, chairman, chief executive, and president of CBC, stated that the banking industry is poised for innovation. The pilot program is set to conclude in February, with potential plans to expand its scope to other industries if the initial phase proves successful, according to Dr. Sridhar “Sri” Sundaram, dean of CSUF’s business college.

The program focuses on routine banking tasks. CBC will be responsible for the governance of the program, while CSUF will manage student recruitment, faculty supervision, and AI training. Interns will collaborate with CBC leadership to pinpoint AI applications across various departments. These areas include lending evaluations, fraud detection, compliance with the Bank Secrecy Act, and information technology services that support customer service operations.

Patel indicated that AI could accelerate common processes like analyzing financial statements and opening new accounts, thereby delivering services more quickly to customers. He emphasized that while banking relies on personal relationships that cannot be automated, the underlying processes supporting these relationships can be streamlined. A 2026 U.S. Census Bureau data report indicates that 24% of U.S. businesses currently use AI, with another 28% anticipating adoption within six months.

Given the sensitive nature of customer information in banking, the program incorporates strict safeguards. Students are not permitted to input confidential customer data into public AI systems. Instead, practice exercises will utilize fictional or pre-approved sample scenarios. CBC intends to employ a controlled AI environment to safeguard information and mitigate the risk of systems operating outside their intended instructions. Patel noted that the bank uses closed-loop large language models and is committed to being “very conservative and try to utilize it with a keen eye.”

The pilot program also offers a potential recruitment pathway for CBC. Students who develop promising solutions during their internships may have the opportunity to continue their projects, potentially transitioning into part-time or full-time roles at the bank upon graduation. Dr. Sundaram remarked that employers seek talent capable of leveraging AI, stating that CSUF is committed to ensuring its “students are AI-literate.”

This partnership builds on a relationship between Commercial Bank of California and CSUF that spans more than a decade. The late Paul Folino, a former CBC chairman, was a notable supporter of CSUF. He organized the Folino Invitational, an annual golf tournament that facilitated the re-establishment of men’s and women’s golf programs at CSUF after a 20-year pause. The tournament raised over $2 million, including $1 million dedicated to an endowment for the university’s golf programs. Patel also contributes to the business college’s dean’s advisory board.

The discussions between Patel and Sundaram through the advisory board led to the exploration of AI initiatives, including plans for an innovation and AI lab. CSUF’s business college launched an AI hub, which received partial funding from a $400,000 grant from the National Science Foundation, under the direction of Amir Dabirian, former university provost and vice president of information technology. Sundaram explained that Patel recognized a significant opportunity for collaboration, which initiated the partnership.

CSUF’s College of Business and Economics continues to grow, serving nearly 10,000 full-time undergraduate students. The college is preparing to relaunch its Professional MBA program next fall. This two-year, cohort-based program is tailored for experienced managers and emerging leaders. The updated program will feature a hybrid schedule, requiring students to be on campus every other Saturday. The $60,000 tuition for the program includes a one-week international study trip, a guest speaker series, and additional support services. Sundaram expects a cohort of 25 to 30 students each year for the redesigned program. Additionally, the college is nearing the opening of a new $27.5 million, 20,000-square-foot facility known as the Landmark Building, anticipated to open in April or May of next year. This building will house the Institute for Leadership Studies and the Giles-O’Malley Center for Leadership.