Citigroup CEO Jane Fraser says the banking industry is managing two major “races” as artificial intelligence develops. In one race, banks try to apply AI to business models in ways that support revenue growth, including speeding product development and improving customer service. Fraser describes this as an effort to use AI to change how banks operate and compete.
The second race is more defensive, focused on how institutions respond to AI’s effects on work. Fraser acknowledges that AI is likely to displace some jobs and reshape roles, though she says the transition can also create new positions. She argues that the impact will be less about eliminating work entirely and more about changing what people do, including augmenting human capabilities.
Fraser’s comments come as Citi continues to streamline parts of its workforce. The bank has reportedly cut about 3,500 technology roles in China as part of broader global workforce reductions aimed at improving efficiency and profitability, according to one of the sources.
