Citizens Bank is deploying generative AI and migrating operations to the cloud as part of its cost-saving and efficiency measures. 

The bank reported that 70% of its applications will be on the cloud by the end of 2024 and it aims to deploy generative AI to increase efficiencies at its call centers.

“We have launched some analysis in the generative AI space, and we’re live on a couple of use cases,” Chief Financial Officer John Woods said during Citizens’ second-quarter earnings call July 17. With automation and AI, the bank is going to “see an ability to broaden out” its cost savings in 2025, he said. 

Citizens expects to save $135 million this year compared to $115 million in 2023, Chief Executive Bruce Van Saun said during the earnings call. The savings will come through its Tapping Our Potential program which uses AI and automation to increase efficiencies and reduce costs. Ally Financial, JPMorgan, Citi, and TD Bank have deployed similar programs. 

THE BIG PICTURE: Citizens has launched a gen AI-driven virtual assistant, Digital Butler, for corporate clients and is using the tech to help its customer representatives record and summarize calls, Joanne Wyper, head of commercial banking digital and operations, previously told Bank Automation News. 

TD Bank similarly rolled out gen AI co-pilots to assist customer representatives and software engineers, Imran Khan, head of TD Invent, the bank’s innovation arm, previously told BAN. 

BY THE NUMBERS: In Q2, Citizens reported: 

• Total revenue of $2 billion, down 6% year over year; 

• Equipment and software expense of $186 million, up 5% YoY; 

• Headcount of 17,510, down 5% YoY; and 

• Efficiency ratio of 66.3% compared with 62.3% last year. 

MARKET REACTION: Citizens’ shares were trading at $41.10, up 7.1% at market close Wednesday. 

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