UniCredit has announced that it has signed a Memorandum of Understanding (MoU) with Google Cloud as part of its digital transformation plans.

The 10-year agreement will give the pan-European commercial bank access to AI, and data analytics to streamline its digital architecture and improve products across the bank's 13 core markets.

UniCredit said that the partnership represents a “major investment” in its cloud infrastructure, adding that it will involve migrating large sections of its applications, including legacy systems, to the new platform.

The bank will use the new cloud platform for AI workloads, adopting Google's advanced AI capabilities, including its Vertex AI platform and Gemini models.

It said the bank will use these technologies to develop and refine new service offerings, improve internal efficiencies, and create industry-leading customer experiences.

Potential applications could include areas such as investment banking insights, enhanced customer interactions, operational process optimisation, financial crime prevention, and the development of new AI-powered financial products.

The MoU also establishes a strategic business partnership with Google Cloud, which means that the bank could also explore services from other divisions, such as Google Maps to support customer interactions.

"This strategic partnership with Google Cloud is a pivotal step in our strategy to be the bank for Europe's future," said Andrea Orcel, chief executive Unicredit. "In line with our single-partner approach for strategic collaborations, we have sought out the best and now we are all in with them in the pursuit of excellence.

"Google Cloud's cutting-edge cloud, AI and data analytics capabilities, will empower our ongoing digital transformation - further enhancing our customer offerings, streamlining our operations, and fostering a new era of data-driven innovation."

Ali Khan, group digital and information officer at UniCredit, said that the move would massively advance the company's tech footprint in areas such as AI, data and virtualised infrastructure.

"AI is unlocking immense opportunities for business transformation and growth, offering significant economic advantages to organisations that proactively embrace its potential," said Ruth Porat, president and chief investment officer, Alphabet and Google.

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