U.S. Banks Say AI Will Boost Productivity and Likely Reduce Jobs

NEW YORK — Major U.S. banks are increasingly turning to artificial intelligence to improve efficiency, a shift that executives say will significantly raise productivity while gradually reducing the need for human labor and reshaping banking jobs across the industry.

At JPMorgan Chase, consumer and community banking head Marianne Lake told attendees at a Goldman Sachs financial services conference that AI adoption has already doubled productivity gains at the bank. She said efficiency improvements have climbed to roughly 6%, compared with about 3% before advanced AI tools were deployed.

Lake noted that operational teams, in particular, could see productivity improvements of as much as 40% to 50%. As these efficiencies scale, she said, the overall impact is likely to limit job growth rather than expand banking jobs, resulting in fewer roles over time on a net basis.

Artificial intelligence is widely viewed as a transformative force, with the potential to reshape the global economy much like the internet did decades ago. While the technology has driven massive corporate investment and fueled strong equity market performance, it has also contributed to supply-chain pressures — particularly in semiconductor manufacturing — heightened regulatory oversight, and growing concerns about workforce displacement.

Wells Fargo CEO Charlie Scharf said his bank has not yet reduced its workforce as a direct result of AI implementation. However, he acknowledged that productivity gains are already evident.

“We’re accomplishing significantly more work than before,” Scharf said, adding that the bank is actively evaluating areas where technology could allow operations to run with fewer people.

AI, Scharf emphasized, is unlikely to eliminate the human workforce entirely, but it does create opportunities to fundamentally rethink how tasks are performed.

PNC Financial Services CEO Bill Demchak echoed similar sentiments, noting that the bank’s employee count remains unchanged from a decade ago — despite the institution being nearly three times larger today. He​‍​‌‍​‍‌​‍​‌‍​‍‌ explained that this was due to the bank's long-term investments in automation and the efficient operations of the branches.

While the use of AI in banking is a gradual change rather than a revolution, Demchak sees it as a logical next step in the ongoing transformation. Although, to a large extent, automation has been changing the face of banking for several years, Demchak regards AI as a vibrant energy that will not only speed up the current trends but also create new ones especially in tech ​‍​‌‍​‍‌​‍​‌‍​‍‌divisions.

At Citigroup, incoming Chief Financial Officer Gonzalo Luchetti said the bank has already recorded notable efficiency gains in software development, with coding productivity increasing by approximately 9%.

Luchetti explained that generative AI tools are enhancing self-service capabilities while also supporting customer service representatives in real time, enabling them to handle inquiries more effectively within Citi’s U.S. personal banking division.

Meanwhile, Goldman Sachs has begun preparing employees for potential workforce reductions and a slowdown in hiring through the end of the year. According to an internal memo reviewed by Reuters, the firm is pursuing these measures as part of a broader strategy to leverage artificial intelligence to improve operational efficiency, even as banks prepare for potential reductions in jobs and a slower pace of hiring.