Today, AI-enhanced core systems provide immediate benefits to financial institutions, while AI-based core systems are experimental." "We call it an operating system versus a core because we do more than what a typical core banking service would provide," he said. AI-based reasoning engines are inherently harder to audit than current core banking systems." "A truly AI-native core banking system learns continuously from outcomes: a declined loan that should have been approved, a fraud flag that was wrong," he said. Tom Seo, founder of venture capital firm Inverted Capital, told American Banker that core banking is not immune to the broader "software-is-dead" market narrative .