Citi Global Insights and Solutions publishes new report AI and Finance: Bot, Banking and BeyondThe report analyzes the role that artificial intelligence (AI) could play in changing the way consumers and businesses bank.
From the likely use of autonomous agents seamlessly executing customer decisions in the background, to the productivity gains generated by access to better data insights, robobanks are poised to revolutionize every aspect of the banking industry, the report said.
David Griffiths, Citi’s Chief Technology Officer, said: “The pace of adoption and impact of Gen 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 implementing AI safely and responsibly to amplify the power of Citi and our employees.”
Ronit Ghose, Head of Future of Finance at Citi Global Insights, said: “AI will transform finance by empowering customers, creating new jobs, and increasing competition. AI will make money and customers smarter. In the future, every customer will have an AI-powered assistant in their pocket, improving their financial lives.”
The main highlights and themes of the report include:
- $2 trillion in profits: AI could increase total banking sector profits by 2028E by 9%, or $170 billion, from just over $1.8 trillion to nearly $2 trillion. This figure excludes profits from the non-bank financial sector. Citi, TTS survey, April 2024.
- Productivity gains: AI could enable banks to achieve productivity gains by automating routine tasks, streamlining operations, and allowing employees to focus on higher-value activities. Generative AI will likely have a significant impact on internal tasks such as content and information management, coding, and software.
- Governance and talents: The growth of AI may lead to a decline in 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 is a challenge for banks and other industries. The war for talent is not over. Humans are still in demand.
- Will AI reduce or increase jobs in the financial sector? The adoption of new technologies has not led to a reduction in the financial sector workforce, but it has changed the composition of the workforce over time. New jobs are constantly being created.
- Will AI bring better value to customers? The integration of AI-powered bots into retail and corporate banking represents significant transformational potential, delivering benefits such as automated decision-making and deal-finding for customers, as well as increased operational efficiency for banks.