Liberty's AI Play: Redefining Partnership in a Regulated World

MIAMI BEACH, FL – June 18, 2026 – In a move that signals a significant strategic pivot for regional banking, Liberty Bank, an institution with roots stretching back to 1825, has announced the formation of a dedicated AI Center of Excellence. More telling than the creation of the center itself, however, is the nature of its foundational partnership with enterprise AI firm Flare AI. The collaboration eschews the well-trodden path of enterprise software licensing in favor of a model built entirely on delivering business outcomes, a decision that could create a new playbook for technology adoption in highly regulated industries.

For years, financial institutions have been sold the promise of artificial intelligence, often through expensive, multi-year licensing deals for complex platforms. The story that followed was frequently one of disappointment: high upfront costs, lengthy and difficult implementations, and a struggle to translate powerful tools into tangible business value. Liberty Bank is betting on a different approach. By tying its investment to results, the bank is shifting the execution risk from itself to its technology partner, demanding not just software, but solutions.

Beyond the License: A New Model for AI Adoption

The core of the Liberty-Flare AI partnership is its structure. “Unlike traditional enterprise software partnerships, the engagement is structured around outcomes rather than licensed applications,” said David Hadd, Liberty Bank’s head of Business Transformation. This represents a fundamental change in procurement philosophy. Instead of buying access to a platform and being left to "figure out the rest," as Flare AI CEO Scott Killoh described the common predicament, Liberty Bank is essentially commissioning finished, working AI systems.

This outcome-based model aligns vendor and client incentives in a way that traditional licensing rarely does. Flare AI's compensation is intrinsically linked to its ability to design, build, and deploy AI systems that achieve pre-defined goals within Liberty's complex operational and regulatory framework. The firm claims this approach can compress "what has historically been a multi-year technology buildout into weeks." This acceleration is critical. Industry analysis supports the shift, with Gartner forecasting that over 30% of enterprise software-as-a-service solutions will incorporate outcome-based components by 2025, a clear indicator that a market hungry for tangible ROI is moving beyond paying for potential alone.

For a bank, these outcomes are not abstract. They translate into measurable improvements in operational efficiency, such as automating complex back-office processes in compliance and payments, where some experts believe AI can generate savings of up to 25%. They also manifest in enhanced customer experience, with AI engines personalizing services and streamlining interactions. By focusing on these concrete results, the model forces a level of discipline and clarity from the outset, ensuring that every AI initiative is tethered to a clear business objective.

How a 200-Year-Old Bank Is Building the Future

For an institution with nearly two centuries of history, the challenge is not a lack of vision but the inertia that can inhibit execution. David Glidden, President and CEO of Liberty Bank, acknowledged this directly: “For a bank our size, the challenge has never been ambition. It has been the time it takes to translate strategy into execution.” This partnership is a direct assault on that friction, designed to infuse the venerable institution with the agility of a fintech startup.

The initial focus will be on high-impact areas: enhancing workforce productivity, elevating the customer experience, and automating core processes that have historically acted as operational bottlenecks. This is not merely about incremental improvements. The goal is to transform Liberty "from a bank that currently utilizes AI for very specific functions to one that fully embraces everything technology has to offer." This ambition reflects a broader trend identified by McKinsey, which found that core regional banks are often moving more aggressively than even their megabank counterparts in deploying generative AI use cases.

By creating a centralized AI Center of Excellence, Liberty is building an internal engine for continuous innovation. The plan is to develop reusable AI capabilities that compound in value over time, allowing the bank to scale its technological prowess at a pace that matches customer expectations and market demands. This strategic investment in foundational capability, rather than one-off tools, positions the bank not just to compete, but to potentially leapfrog competitors who remain mired in slower, more traditional innovation cycles.

The Human Factor: De-Risking Tech with Trust

Beneath the strategic frameworks and technological roadmaps lies a critical, and often overlooked, component of this partnership's potential success: a pre-existing relationship. Flare AI’s President and Chief Strategy Officer, David Mitchell, is no stranger to Liberty Bank. He previously served as an executive leader there for six years, spearheading much of the bank's digital advancement.

This is more than a convenient footnote; it's a significant strategic asset. Glidden's enthusiasm about the collaboration highlights this, noting it is "an exciting opportunity to work with Flare’s President and Chief Strategy Officer David Mitchell again." This shared history provides Flare AI with deep institutional knowledge of Liberty’s culture, operational realities, and strategic pain points. Such an 'insider' perspective is invaluable, allowing the partnership to bypass the lengthy discovery and trust-building phases that can bog down complex technology integrations.

Mitchell's presence effectively acts as a bridge between the world of a legacy financial institution and a nimble AI enterprise. His understanding of the bank's internal workings and regulatory constraints allows Flare AI to tailor its solutions with a precision that an outside vendor would struggle to achieve. This human element de-risks the entire endeavor, fostering a level of seamless collaboration that is essential when deploying transformative technology. It underscores a timeless business truth: even in an age of artificial intelligence, competitive advantage is often built on a foundation of human trust.

The Gauntlet of Governance and Security

For any bank, the promise of AI is matched only by its peril. Deploying powerful new systems within one of the world's most heavily regulated sectors requires an uncompromising focus on security, compliance, and governance. Flare AI’s entire value proposition appears to be built around this reality. The firm emphasizes that its platform is purpose-built for regulated industries, with "Compliance-Grade AI Governance" and "Bank-Grade Security" integrated from the ground up, not added as an afterthought.

This means providing complete audit trails, granular user controls, and the ability to meet the stringent oversight standards of both internal auditors and external regulators like the OCC and the Federal Reserve. As Killoh stated, the goal is to deliver AI systems that are "secure, compliant, and tailored to their business, at a pace that has not previously been possible." This integrated approach to governance is what allows a bank like Liberty to pursue innovation without compromising its fundamental duties of security and regulatory adherence.

By partnering with a specialist that speaks the language of financial compliance, Liberty is mitigating one of the biggest hurdles to AI adoption in the sector. The bank is not just acquiring technology; it is acquiring expertise in how to deploy that technology responsibly and securely. This focus on governed innovation is what will ultimately separate the successful AI adopters from those who are sidelined by compliance failures or security breaches. The partnership demonstrates a mature understanding that in banking, the most advanced technology is only as good as the guardrails that surround it.