Citi has unveiled a new report, AI & Finance: Bot, Bank & Beyond, exploring the transformative potential of AI in the banking sector.
The report projects a remarkable profit surge for the banking industry, with AI-driven strategies potentially increasing total banking profits by 9%, from just over $1.8 trillion to nearly $2 trillion by 2028.
Citi Chief Technology Officer, David Griffiths, emphasized the rapid adoption and impactful evolution of Generative AI across various sectors. “The pace of adoption and impact of Gen AI across industries has been astounding as it becomes clear that it has the potential to revolutionize the banking industry and improve profitability.
“At Citi, we’re focused on implementing AI in a safe and responsible way to amplify the power of Citi and our people,” Griffiths noted.
Further insights from Ronit Ghose, Head of Future of Finance at Citi Global Insights, highlight AI’s capacity to enhance client empowerment, job creation, and market competition.
Ghose remarked, “AI will transform finance by empowering clients, creating new jobs and increasing competition. AI will make money and clients smarter. In the future, every client will have an AI-powered assistant in their pocket, making their financial lives better.”
The report details several areas where AI could significantly impact banking operations:
- Productivity: By automating mundane tasks, streamlining operations, and enabling staff to concentrate on higher-value activities, AI is poised to drive substantial productivity gains. This includes major advancements in internal operations like content management, coding, and software development.
- Governance and Talent: Although AI might reduce the need for low-skilled roles in operations and technology, it is expected to expand governance and compliance positions. The report underscores ongoing challenges in acquiring AI talent, suggesting that the competition for skilled professionals is far from over.
- Workforce Dynamics: Contrary to concerns about AI reducing the number of jobs, the technology’s historical adoption trends reveal that it tends to evolve the workforce mix while fostering the creation of new job roles.
- Client Value: AI integration is set to redefine both retail and corporate banking, offering automated decision-making capabilities and optimizing service offers, thereby improving overall operational efficiency and client satisfaction.
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