Citigroup's Push into Generative AI Signals Tech-Driven Future for Banking

Citigroup Inc C looks to provide most of its 40,000 coders access to generative artificial intelligence (AI). 

Also Read: Morgan Stanley's AI Assistant Faces Criticism Amid High Expectations

Previously, as part of a pilot initiative, the multinational investment bank had discreetly permitted around 250 developers to dabble with generative AI. 

The bank intends to extend this program to a more significant portion of its coding team in 2024, Bloomberg reports.

Banking leaders are increasingly convinced that AI can enhance staff productivity. 

For instance, when U.S. federal regulators released a comprehensive 1,089-page document detailing new capital rules, Citigroup utilized generative AI to analyze it meticulously, as per Bloomberg. 

The bank's risk and compliance unit employed AI to gauge the implications of these regulations, which would influence the capital reserves the bank would need to maintain against potential future losses.

Following the emergence of ChatGPT, Citigroup intensified its efforts to harness AI's potential. Consequently, the bank established two dedicated task forces earlier this year to investigate the technology's possible applications. 

Stuart Riley, the bank's co-chief information officer spearheading this initiative, emphasized the bank-wide application of this technology, ranging from daily tasks to intricate projects, Bloomberg notes.

Citigroup is also venturing into updating its systems using AI, which would typically demand significant financial and human resources. 

For instance, to modernize legacy systems, the bank needs to transition from older coding languages like Cobol to newer ones like Java, and AI can facilitate this translation. Furthermore, the bank is exploring generative AI to scrutinize documentation and produce content, allowing staff to allocate more time to client interactions rather than data analysis, the report said.

Investment banks, including Morgan Stanley MS and JP Morgan Chase & Co JPM, tapped generative AI technology to aid financial advisers in swiftly accessing various research papers and documents. 

Price Action: C shares traded lower by 0.13% at $39.29 premarket on the last check Friday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.