Fintech
Citi publishes a new report on artificial intelligence in finance
Citi Global Perspectives and Solutions publishes a new report AI and finance: bots, banks and beyond. The report analyzes the role that artificial intelligence (AI) could play in changing the way both consumers and businesses bank.
According to the report, from the likely use of autonomous agents that seamlessly execute customer decisions in the background, to the productivity gains achieved through better data insights, banking robots are set to revolutionize all aspects of the banking industry.
David Griffiths, Chief Technology Officer at Citi, said: “The pace of adoption and impact of generational AI across industries has been astounding as it has become clear that it has the potential to revolutionize banking and improve profitability. At Citi, we are focused on deploying AI safely and responsibly to amplify the power of Citi and our people.”
Ronit Ghose, Head of Future of Finance, Citi Global Insights, said: “AI will transform finance by empowering customers, creating new jobs and increasing competition. Artificial intelligence will make money and customers smarter. In the future, every customer will have an AI-powered assistant in their pocket, which will improve their financial life.”
Highlights and key themes from the report include:
- $2 trillion in profit: AI could increase total banking industry profits in 2028 by 9%, or $170 billion, from just over $1.8 trillion to nearly $2 trillion. This excludes profits from the non-bank financial sector. Citi, TTS survey, April 2024.
- Productivity Gains: AI could drive productivity gains for banks by automating routine tasks, streamlining operations and allowing employees to focus on higher-value tasks. Generative AI will likely have a large impact on internal tasks such as content and information management, coding, and software.
- Governance and talent: The growth of AI may lead to fewer low-skilled roles in operations and technology, but governance and compliance roles will continue to grow. Our survey responses suggest that the availability of AI talent presents a challenge for banks and others. The talent wars are not over. Humans are still in demand.
- Will artificial intelligence reduce or increase jobs in the financial sector? The historical adoption of technology has not led to the reduction of the finance workforce but has changed the workforce mix over time. New jobs are constantly being created.
- Will AI generate better value for customers? The integration of AI-based robots into retail and corporate banking represents a significant potential transformation, offering customers benefits such as automated decision-making and finding the best deals, as well as increased operational efficiency of banks.