Citi CEO Jane Fraser Says AI Will Shape Bank’s Next Turnaround Phase

Citigroup CEO Jane Fraser said the bank is moving from restructuring toward a focus on excellence, while adopting artificial intelligence and managing the risks that come with the technology.

“We’re definitely in the more fun part of everything that’s going on. We’ve got a lot of the heavy lifting behind us,” Fraser said Oct. 14. “If we are going to be the best in the businesses we’re in, we have to beat the best.”

Since becoming CEO in 2021, Fraser has reorganized Citi into five core businesses, reduced management layers and started exiting consumer banking in 14 markets outside the United States. The bank has also slated 20,000 job cuts for completion before 2027.

Citi posted its best third-quarter revenue in a decade and a $5.2 billion profit. The results continued a turnaround Fraser now says is entering a phase focused on excellence. Citi’s third-quarter results included an 8% revenue increase.

Fraser said AI can help Citi generate revenue, lower costs and secure the bank. One project is an AI avatar for the wealth business, developed with help from Google DeepMind. It is designed to speak with clients at any hour of the night; Fraser said it is not intended to replace a team member.

The effect of AI on staffing remains uncertain. Fraser said the technology may automate some work while creating other jobs. Citi requires 175,000 employees to complete AI training focused on writing prompts.

Fraser said banks need to manage AI risks as quickly as they adopt the technology. “You don’t compete on cyber,” she said. “You collaborate on cyber.”