• Major US banks say AI is lifting output across their operations.
• Banks report higher productivity in coding, call support, and back-office work due to AI.

Major US banks are starting to describe in more detail how artificial intelligence is changing their operations, raising both expectations for higher productivity and concerns about future job cuts.

At a recent Goldman Sachs financial services event, JPMorgan Chase consumer and community banking chief Marianne Lake said the bank has lifted its productivity rate to 6 per cent with AI, up from 3 per cent before its use. She added that productivity among operations specialists could rise by 40 to 50 per cent. Higher output, she said, should lessen the overall hit to jobs even though some roles will change or be reduced.

AI is now seen inside the industry as one of the largest shifts since the arrival of the internet. The surge of investment and stock gains has been matched by shortages of memory chips, closer attention from regulators, and growing worry about what automation will mean for workers.

Wells Fargo CEO Charlie Scharf said the bank has not cut staff, but AI is allowing teams to finish more work. “There are other places out there where we’re gonna be able to look at and figure out, how are we able to do more with less people,” he said. “It’s not going to totally replace humans, but does create an opportunity to do things significantly different.”

PNC Financial CEO Bill Demchak said the bank’s workforce is roughly the same size it was a decade ago, even though the company has tripled in size over that period. He credited automation and changes to branch operations for most of that shift. “You know, the big buzz right now is it’s going to continue because AI is going to drive it. But we’ve been on a journey of automation for years, and AI may well be an accelerant,” he said. “It will most definitely be an accelerant in our tech headcount.”

Citigroup’s incoming CFO, Gonzalo Luchetti, said the bank has seen a 9 per cent lift in coding output. He added that AI tools are improving customer service as well. “Not only can we increase the self-service ratio, which we’re already seeing and doing with our Gen AI, but in addition we’re able to assist real time those calls that end up with a human and they can be more productive,” he said, referring to the US Personal Banking unit.

Some firms are already preparing for possible staff cuts tied to new efficiency targets. In October, Goldman Sachs told employees that job reductions and slower hiring may continue through the end of the year, according to an internal memo seen by Reuters. The memo, which described the effort as “OneGS 3.0,” said the bank is focusing its AI work on sales and client onboarding, along with lending, regulatory reporting, and vendor management.

Bank of America is also planning large investments in new technologies, including AI, to help bankers increase output and raise revenue, its chief technology and information officer told Reuters last month.

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