According to a report by Citigroup, 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). This trend reflects the growing interest among major global banks in integrating AI technologies to enhance productivity and reduce operational costs.
Citigroup projects that AI implementations could contribute a substantial $170 billion to the banking industry by 2028. The bank has already taken steps to equip its workforce, including 40,000 coders, with the ability to explore various AI technologies. These efforts include leveraging generative AI, which allows tasks like sifting through extensive regulatory documents to be done quickly and efficiently.
Practical Applications of AI in Banking
During a digital money symposium, Citigroup’s CEO Jane Fraser emphasized 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 even 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.
Impact on Workforce and Customer Interactions
Despite the potential for automation, Citigroup indicated that AI adoption might not necessarily lead to a reduction in the overall workforce size. Instead, financial institutions may require additional roles such as AI managers and compliance officers specializing in AI regulations.
It is worth noting that 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 also cautioned about the limitations of AI chatbots, including struggles with slang and ambiguities. These limitations could potentially impact customer interactions and operational outcomes.
Overall, the integration of AI in the banking sector represents a significant shift in the industry’s approach to technology, with the potential to enhance productivity, reduce costs, and drive innovation.