Last week, Commonwealth Bank of Australia (ASX: CBA) shares hit a new all time high of $182. That made CBA shares the first ASX listed company to reach a market capitalisation of $300 billion. 

Over the past 12 months, CBA has surged 45%. The company is up 18% for the year to date, repeatedly defying broker warnings that the big four bank is overvalued. CBA shares now account for around 12% of the S&P/ASX 200 Index (ASX: XJO). 

Based on its earnings, CBA has become one of the most expensive bank stocks in the world. It's even ahead of Wall Street banking giant JP Morgan (NYSE:JPM). CBA currently trades at a price-to-earnings (PE) ratio of 30, more than double that of JP Morgan, which sits at around 12 times earnings. 

CBA shares are a staple in many ASX investors' portfolios. The big four bank leads the mortgage market, accounting for 25% of all bank lending to households.

Consensus analyst forecasts on CommSec have 10 strong sell recommendations, three moderate sells, and two hold recommendations. None are currently recommending CBA as a buy.

Given CBA's dominance and high valuation, ASX investors may be wondering whether CBA shares could continue to defy expectations and rise higher. 

While this may be challenging, CBA's recent initiatives around artificial intelligence (AI) could be an avenue for future growth.

Could artificial intelligence take CBA to new heights?

AI is shaping all industries, from technology to healthcare. 

At the Amazon Web Services Summit in Sydney this week, CBA Chief Executive Officer Matt Comyn discussed the significance of AI and how CBA has embraced it. 

As reported by The Australian, Mr Comyn said the pace of the AI boom had been faster than he had expected. This has driven CBA to establish a tech hub in Seattle to maintain its competitive edge. 

He also discussed the reluctance of Australian companies to adopt AI at scale, often challenged by being unable to quantify the benefits and gain adequate assurances around privacy and data security.

Mr Comyn said

The reality is, we're all facing uncertainty in our roles in different, but I'm absolutely convinced that the best way to prepare for the future is to be part of the future – to have the agency and engagement, rather than being sort of a reluctant or a late adopter.

He also suggested executives need to be more hands on to set an example

My personal view is the leader of the future, irrespective of industry and domain, needs to be very hands on in a number of ways, including with a lot of the tools that available now. Trying to people to use them both personally and professionally, I think that actually helps.

CBA has migrated its data platform to Amazon Web Services (AWS) cloud. This is expected to make it easier for customers to more efficiently seek assistance from various departments.According to The Australian, while other large Australian companies are lagging CBA in terms of AI adoption, 81% of start-ups are leveraging the technology.

Could CBA shares hit $200?

There's no doubt that CBA shares have become very expensive, currently trading on a PE of around 30 after hitting an all time high of $182 this week. This has left many existing CBA shareholders wondering whether there's any room for further growth or whether they should take profits.  Macquarie is certainly suggesting the latter, with an underperform rating and price target of $105 on the big four bank.

However, CBA's AI initiatives, which have flown under the radar, have been extensive. Could this drive CBA shares to the psychological $200 barrier? Only time will tell whether the ASX banking powerhouse is able to defy expectations once again.