The bank’s Head of Technology, Tim Ryan, disclosed that AI tools are now playing a central role in migrating data from legacy systems, automating coding processes, and accelerating software testing.
“We still have legacy systems, but after the tech investments we’ve made, we are in a much better place,” Ryan said, noting that AI is helping the bank transition away from outdated platforms more efficiently.
One of the immediate impacts has been in client onboarding. According to Ryan, an AI-powered document processing system has reduced the time required to review account-opening documents in the U.S. services division from about one hour to just 15 minutes.
The move reflects a wider trend among U.S. banks adopting AI technologies to enhance efficiency, cut costs, and, in some cases, restructure their workforce.
Shift Away from External Contractors
Citigroup is also restructuring its technology workforce to rely more on in-house talent. Ryan, who joined the bank from PwC less than two years ago, is leading efforts to significantly reduce dependence on external IT contractors.
The bank had previously indicated plans to cut contractor representation in its tech workforce from around 50% to 20%. Ryan confirmed that the company is now about halfway toward achieving that target, having hired thousands of employees and expanded its pool of software engineers.
Citigroup currently employs roughly 50,000 technology staff and is focusing on building internal expertise as it deepens investments in AI development and deployment.
Regulatory and Strategic Drivers
The increased investment in technology is partly driven by regulatory requirements. In 2020, the bank was placed under consent orders by the Federal Reserve and the Office of the Comptroller of the Currency, mandating improvements in risk management, data governance, and regulatory reporting.
As part of its transformation strategy, Citigroup is prioritising automation across key internal processes. The first 50 targeted areas include client onboarding, employee onboarding, and “know your customer” (KYC) compliance procedures.
The bank’s leadership says the adoption of consistent AI tools across its global operations will be critical to achieving long-term efficiency gains, strengthening compliance, and maintaining competitiveness in an increasingly digital financial landscape.