AI Costs Lead Westpac to Prod Staff Toward ‘Sensible’ Model Use

Westpac Banking Corp. is intensifying efforts to monitor artificial intelligence costs, tracking AI tokens across the firm and routing simpler tasks to cheaper models, according to chief AI officer Dan Jermyn. The Australian lender aims to ensure staff make sensible choices about model usage to get the best return, as executives globally grow more worried about AI deployment costs.

Bloomberg -- Westpac Banking Corp. is intensifying efforts to monitor artificial intelligence costs, as the Australian lender closely tracks AI tokens across the firm and routes simpler tasks to cheaper models. Most Read from Bloomberg - Microsoft's Xbox to Shift Obsidian Studio to New 'Fallout' Video Game https://www.bloomberg.com/news/articles/2026-07-08/microsoft-s-xbox-to-shift-obsidian-studio-to-new-fallout-video-game?utm campaign=bn&utm medium=distro&utm source=yahooUS - Trump Vents Anger With Iran and Warns Ceasefire May Be 'Over' https://www.bloomberg.com/news/articles/2026-07-08/trump-says-us-ceasefire-with-iran-is-over-after-strikes?utm campaign=bn&utm medium=distro&utm source=yahooUS - Nvidia's $1 Trillion Slide Sends Valuation to Pre-AI Boom Levels https://www.bloomberg.com/news/articles/2026-07-08/nvidia-s-1-trillion-slide-sends-valuation-to-pre-ai-boom-levels?utm campaign=bn&utm medium=distro&utm source=yahooUS - Greece Offers Bounty to Catch Ravenous Fish Lured by Warming Sea https://www.bloomberg.com/news/articles/2026-07-05/greece-offers-bounty-to-catch-ravenous-fish-lured-by-warming-sea?utm campaign=bn&utm medium=distro&utm source=yahooUS - Stocks Fall as US-Iran Jitters Spur Rally in Oil: Markets Wrap https://www.bloomberg.com/news/articles/2026-07-07/oil-jumps-on-iran-attack-asian-stocks-set-to-drop-markets-wrap?utm campaign=bn&utm medium=distro&utm source=yahooUS As part of the push, the bank is tracking its employees' consumption of AI tokens, including in its software development teams that have access to the most advanced and expensive models, according to its new chief AI officer Dan Jermyn. "We are looking at how much people are spending via AI tokens and focusing on routing the work to the right model for cost and efficiency, while delivering the best outcomes," said Jermyn, who joined Westpac from larger rival Commonwealth Bank of Australia this year. The bank wants staff to "understand the intricacies of how different models work" and "make sensible choices about the models and tools we're using to get the best return," he added. His comments come as executives around the world grow more worried about the costs of deploying AI. The focus on expenses reflects a shift for businesses that adopted AI to boost productivity, but are now closely analyzing usage to make sure it is providing value — a dynamic that could pressure revenues for providers like OpenAI and Anthropic PBC. Westpac's AI cost scrutiny comes amid the bank's UNITE initiative to centralize disparate systems from legacy acquisitions, a task Jermyn said could ultimately improve how the company makes use of AI in its operations. Australia's second largest bank by assets saw total spending on technology climb 13% to A$3.1 billion $2.2 billion in its most recent financial year ending Sept. 30, underscoring the growing expense the company faces in this area. More than 15,000 staff, or under half of its employees, are using generative AI to support how they work, Westpac said in its most recent annual report. The bank said it's investing in modernizing systems to better harness the technology. "The competitive advantage is not just in gaining access to any one model, it's about how you use AI efficiency across the bank that leads to the best result," Jermyn said. "The speed of change with the latest AI tools is dramatic but you have to find the balance between empowering people and managing the cost."