Kyndryl launches its first AI Innovation Lab in the European Union

LUXEMBOURG, October 2, 2026 — Kyndryl (NYSE: KD), a leading provider of mission-critical enterprise technology services, today announced the opening of its first AI Innovation Lab in the European Union (EU), located in Luxembourg. Specializing in agentic AI, the Lab will strengthen the country’s participation in Europe’s AI innovation ecosystem and is expected to scale to 250 highly skilled jobs by 2030. Banque Internationale à Luxembourg (BIL) will serve as a founding customer and collaborator, tapping into the Lab’s modernization capabilities and contributing real-world banking expertise.

Kyndryl’s AI Innovation Lab in Luxembourg will provide an immersive, co-creation experience where customers in any industry can collaborate with Kyndryl experts to solve their specific business challenges where AI can deliver impact, rapidly develop a working prototype and start implementing. Kyndryl experts – including Forward-Deployed Engineers (FDEs), Human Systems Architects (HSAs) and consultants – leverage our differentiated Agentic AI Framework and work side by side with customers at the Lab to validate ideas, design future workflows and build solutions that drive business outcomes at scale. This helps create a clear path from prototype to production and creates AI-native workflows that can be deployed across a customer’s business at scale.

"Transforming AI ambition into measurable business outcomes requires more than technology. It requires collaboration, expertise and a clear path from innovation to implementation,” said Petra Goude, President of Strategic Markets, Kyndryl. “With its highly skilled workforce and growing technology investment, Luxembourg sits at the intersection of financial services, digital innovation and European regulation, making it an ideal location for our first AI Innovation Lab in the European Union. We look forward to bringing Kyndryl’s Agentic AI Framework, consulting and engineering expertise to unlock AI and deliver measurable outcomes for our customers in regulated industries and beyond.”

The Lab will serve customers in all industries and offer specialized expertise for regulated environments, especially the financial sector as well as for governments. As organizations navigate increasing expectations around transparency, human oversight, security and data protection, including the applicable risk-based requirements of the EU AI Act, they need a structured approach to develop and scale AI responsibly. Kyndryl brings specific expertise supporting AI adoption in regulated industries, combining technology, consulting and implementation capabilities with its deep mission-critical experience.

Kyndryl has operated under the direct supervision of the Commission de Surveillance du Secteur Financier (CSSF) since 2004 under Luxembourg’s Support PFS framework and is designated as a Critical Third-Party ICT Provider under the Digital Operational Resilience Act (DORA). This experience strengthens Kyndryl’s ability to help customers move AI from concept to production while navigating governance, resilience and compliance requirements.

Advancing Luxembourg’s innovation ecosystem with BIL

Kyndryl is proud to welcome BIL, one of Luxembourg’s leading financial institutions, as the Lab’s founding customer and collaborator to explore how agentic AI can help modernize business processes while maintaining high standards of governance, security and compliance.

Kyndryl’s work with BIL reflects growing demand among organizations to co-create and develop AI solutions that support innovation, maintain ownership and control of data and intellectual property and meet regulatory obligations.

“The Kyndryl AI Innovation Lab is a valuable opportunity to bring together BIL’s deep banking expertise and Kyndryl’s technology capabilities, turning innovation into practical, measurable benefits for our customers. It will help us deliver simpler, more responsive services and better tools for our people, while maintaining the strong security, responsible governance and trusted human advice that define our relationship with clients. The recent transfer of BIL employees into Kyndryl further strengthens this partnership, bringing operational knowledge, continuity and shared commitment to the success of this initiative,” said Jeffrey Dentzer, Chief Executive Officer, BIL.

AI innovation network advances modernization

The AI Innovation Lab in Luxembourg joins Kyndryl’s expanding global network of AI Innovation Labs, which also includes locations in Liverpool, UK and Dallas, USA. Together, these Labs help customers in all industries move from ideas to implementation through immersive co-creation experiences that accelerate AI adoption, deliver measurable business value and advance their modernization goals.

Kyndryl’s modernization study published this week found that in Europe, AI adoption is driving the modernization agenda, with 37% of organizations ranking it in their top 3 reasons to modernize. This was slightly higher than the global average of 34% and tied with agility for the top spot. However, about half of organizations in Europe say they are behind schedule on their modernization initiatives, and 18% say they’ve gotten little value from modernization projects so far. The network of Kyndryl AI Innovation Labs aims to overcome these challenges by providing a dynamic co-creation environment where customers and Kyndryls collaborate side-by-side to accelerate the path from AI ideas to AI innovation.

Read more about the Kyndryl AI Innovation Labs.