AIB has filed an application with the High Court that will see the company pressing ahead with a corporate restructuring.
The move is in response to European regulatory rules designed to reduce taxpayer exposure in the event of a bank going bust.
Much like Bank of Ireland during the summer, AIB will establish a holding company called AIB Group.
AIB's move had been delayed until now due to the Government's sale of a 28.8% stake in the bank in June, which raised €3.4 billion.
The restructuring needs approval from the bank's shareholders and it is expected that an EGM will be convened in the near future.
Like their European peers, Irish banks must issue billions in loss absorbing debt to meet the incoming European standards.
However, the setting up of a holding company promises to drive a deeper wedge between European bank resolution strategies as a two-track system emerges.
While Irish and UK banks ramp up holdco issuance, lenders in France and Spain are issuing new forms of senior debt out of their operating companies, an approach endorsed by the European Commission late last year.