M&T Bank Hires Fannie Mae AI Veteran to Lead Engineering

M&T Bank has named Kalyana Bedhu, a veteran of Fannie Mae's AI and machine learning operations, as its new Head of AI Engineering. The appointment, announced via a LinkedIn post by Chief Information Officer Linda Tai on August 11, 2026, places Bedhu in charge of the engineering, platforms, architecture, and governance capabilities that underpin AI innovation across the bank.

Bedhu joins M&T from Fannie Mae, where he led AI/ML initiatives and accelerated model transformation using AI/ML and generative AI, scaling enterprise AI capabilities in a highly regulated environment. His prior experience includes roles as an engineering leader for AI/ML at Microsoft and multiple positions at Ericsson, most recently as Head of Artificial Intelligence.

In a LinkedIn comment, Bedhu said: "Excited to join a team with a strong legacy, firing on all cylinders to modernize and build what's next. Looking forward to learning from the team, contributing to the journey and helping turn the possibilities of AI into meaningful impact for M&T and our customers."

Role and Responsibilities

According to the job description and CIO commentary, Bedhu will be responsible for establishing AI, including generative AI, as a governed, scalable, and value-driven enterprise capability. His remit includes leading enterprise AI platform capabilities, GenAI platforms, LLM integration, model and tool onboarding, and AI-enabled developer experience. He will also define and operationalize an end-to-end AI operating model covering platform engineering, governance, security, and delivery, while embedding AI into the software development lifecycle (SDLC) and meeting risk, compliance, and regulatory requirements.

Strategic Context

The hire reflects M&T's emphasis on building internal AI engineering and platform strength rather than relying solely on external tools. The Buffalo, New York-based bank employs approximately 2,000 technologists across more than 300 teams and spent over $1.2 billion on technology in 2025. CIO Linda Tai, herself a former Fannie Mae executive, has been driving digital and technology initiatives, including rolling out Microsoft Copilot to a large portion of the workforce.

Bringing in a leader with experience scaling AI/ML and GenAI in a highly regulated financial institution signals a focus on practical, governed deployment of AI across the bank's operations and customer-facing capabilities. This move is part of M&T's broader technology modernization push, which emphasizes reliability, resiliency, agility, and responsible AI adoption in a regulated banking environment.

Bedhu's appointment underscores a trend among regional banks to invest in specialized AI leadership to stay competitive with larger institutions. As AI becomes more central to banking operations, having a dedicated head of AI engineering could help M&T streamline processes, enhance customer experiences, and manage risks more effectively.

Investors will be watching how Bedhu's leadership translates into measurable outcomes, such as cost savings, improved efficiency, or new revenue streams. While the immediate financial impact is unclear, the strategic direction is evident: M&T is positioning itself to leverage AI as a core competency.