Select Page

Approximately 54% of jobs within the banking sector have a high potential to be automated, with an additional 12% of roles capable of being augmented by artificial intelligence (AI), according to a report by Citigroup . The study underscores a growing trend among major global banks towards integrating AI technologies, driven by the prospects of enhancing productivity and reducing operational costs.

Citigroup projected that AI implementations could contribute a substantial $170 billion to the banking industry by 2028. The bank has already initiated efforts to equip its workforce, including 40,000 coders, with the ability to explore various AI technologies. These initiatives include leveraging generative AI, which enables tasks such as sifting through extensive regulatory documents quickly and efficiently.

Paradigm shift

During a digital money symposium, Citigroup’s CEO Jane Fraser emphasised the shift from AI experimentation in labs to practical applications within banking operations. The bank aims to utilize AI not only to provide personalized investment advice to wealth clients but also to strengthen cybersecurity measures.

Other major banks, such as JPMorgan Chase & Co. and Deutsche Bank AG, are also intensifying their AI strategies. JPMorgan’s CEO Jamie Dimon has suggested that AI could potentially shorten the workweek to just 3.5 days. Deutsche Bank utilizes AI for portfolio scanning of affluent clients, while ING Groep NV uses it for risk management.

Despite the automation potential, Citigroup indicated that AI adoption might not necessarily lead to a reduction in overall workforce size. Instead, financial institutions may require additional roles such as AI managers and compliance officers specializing in AI regulations.

Historically, technological advancements in banking, such as automated teller machines (ATMs), have not always resulted in job losses but rather in the evolution and creation of new roles. AI-powered customer service, a primary application across fintech and traditional banking sectors alike, has shown significant efficiency gains. However, Citigroup’s report cautioned about AI chatbots’ limitations, including struggles with slang and ambiguities, which could potentially impact customer interactions and operational outcomes.

  • Published On Jun 25, 2024 at 08:00 AM IST

Join the community of 2M+ industry professionals

Subscribe to our newsletter to get latest insights & analysis.

Download ETBFSI App

  • Get Realtime updates
  • Save your favourite articles

icon g play

icon app store


Scan to download App
bfsi barcode

Share it on social networks