Artificial intelligence is rapidly becoming a core operational tool for global banks seeking to modernise infrastructure and improve efficiency. Citigroup is expanding its use of AI across multiple areas of its technology ecosystem, from client onboarding and software development to legacy system migration. The initiative reflects a broader shift in the banking industry where large financial institutions are embedding AI into everyday workflows to streamline processes, reduce costs, and strengthen internal technology capabilities.
Citigroup is intensifying its adoption of artificial intelligence to enhance operational efficiency and modernise its technology environment. The bank is deploying AI across several internal functions, including software development, data migration, testing, and client onboarding processes.
One of the key objectives of the initiative is to simplify the retirement of legacy technology systems while accelerating the development of modern digital infrastructure. AI tools are being used to automate portions of coding and testing processes, allowing technology teams to build and deploy systems more quickly.
AI is also playing a growing role in improving customer-facing services. A newly introduced document processing system has significantly reduced the time required to review documentation for opening accounts within Citi’s US services division. The process, which previously required around an hour of manual review, can now be completed in approximately 15 minutes.
The bank is simultaneously restructuring its technology workforce to support its long-term digital strategy. Citi has been increasing the number of internal technology specialists while reducing its reliance on external contractors. The organisation plans to hire thousands of additional IT professionals as part of this transformation.
Historically, contractors accounted for roughly half of Citi’s technology workforce. The bank is working to reduce that proportion to around 20 percent, strengthening its internal expertise and enabling more consistent implementation of technology initiatives.
Citigroup currently employs approximately 50,000 technology professionals globally. The institution is investing heavily in internal development capabilities as it expands the deployment of AI tools across different business units.
Regulatory requirements have also influenced the bank’s technology modernisation programme. Following consent orders issued in 2020 that required improvements in risk management and regulatory data accuracy, Citi has been strengthening its internal systems and operational controls.
As part of this effort, the bank has identified dozens of critical operational processes for automation using AI technologies. These include client onboarding, employee onboarding, compliance monitoring, and know-your-customer (KYC) procedures.
By automating these processes, Citi aims to improve operational efficiency while ensuring stronger compliance and risk management capabilities across the organisation.
What this means for the industry
- Major banks are increasingly deploying AI to modernise legacy infrastructure and automate operational workflows.
- AI-driven tools are helping financial institutions accelerate client onboarding, compliance processes, and software development cycles.
- Banks are investing heavily in internal technology talent to reduce reliance on external contractors and strengthen digital capabilities.
- Regulatory pressures are pushing institutions to adopt advanced technologies that improve risk management and data accuracy.
- As AI becomes embedded across banking operations, it is evolving from a productivity tool into a core infrastructure layer for modern financial institutions.
Photo by Declan Sun
