Citigroup is starting to realize returns on its investments in generative AI and tech modernization. 

The $1.7 trillion bank reported that its gen AI tool saved employees 100,000 hours during the third quarter. The bank conducted 1 million code reviews in Q3, up from 220,000 code reviews in Q1, according to its Q3 earnings report.

“The cumulative effect of what we have done over the past years — our transformation, our refreshed strategy, our simplification — have put Citi in a materially different place in terms of our ability to compete,” Chief Executive Jane Fraser said during the bank’s earnings call today.  

“Investments in new products, digital assets and AI are driving innovation and improved capabilities across the franchise,” Fraser said. 

The bank will continue to invest in AI as it sees returns on its investments through efficiency and cost effectiveness of operations, Fraser said, adding that both Citi and the U.S. economy are remaining steadfast in AI investments. 

The bank reported an efficiency ratio of 64.7% compared with 65% in Q3 2024, Chief Financial Officer Mark Mason said during the earning call. “Efficiency ratio is expected to improve even further as the organization becomes more digital and streamlined.” 

Q3 tech spend, revenue 

Citi reported the following in Q3: 

• Tech and communication spend of $2.3 billion, up 2% year over year; and 

• Revenue of $22.1 billion, up 9% YoY. 

Citi’s AI investment 

In Q3, the bank’s AI moves have spanned investing in AI companies to embedding the tech in its operations. It has: 

• Deployed AI into its business banking operations for documentation, fraud detection and routing client queries; 

• Deployed gen AI in an advisory tool called Advisor Insight earlier this year to help wealth advisers generate reports and provide data-driven insights; 

• Hired Shobhit Varshney as head of AI in September; 

• Invested in AI and agentic AI companies, including credit data and payments platform Spinwheel, through its venture arm Citi Ventures.  

In Q3, Citi invested in these AI companies: 

• Wealth management company Conquest Planning; 

• Spend management service provider Clara;  

• AML service provider IVIX; and  

• Compliance service provider Endor Labs. 

Citi stock was up 4.44% to $100.36 from market open today. The bank has a market capitalization of $184 billion.

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