Wells Fargo to ramp up AI, digital investments in 2026
Bank forecasts $1.1B in incremental tech expenses this year
Wells Fargo is prioritizing AI and technology investments in 2026 as part of its efficiency initiatives.
The company continues to explore new technologies to “drive better automation” and streamline operations, Chief Financial Officer Michael Santomassimo said today during the $2.1 trillion bank’s fourth-quarter earnings call.
Wells Fargo projects total expenses to increase 1.6% year over year in 2026 to $55.7 billion, including $1.1 billion in incremental technology expenses, according to its earnings presentation.
The bank’s planned AI and digital investments in 2026 include:
- Generative AI to drive automation and improve client service;
- Data platforms to enhance AI prowess and generate more insights;
- AI for call centers, customer service and other core banking functions;
- Continued transition of applications into public and private clouds;
- Digital payment offerings and mobile banking services; and
- Digital tools for its Vantage platform spanning commercial banking, lending and foreign exchange.
This year’s AI efforts follow a busy 2025 integrating AI:
- In December, the bank reported gen AI had improved coding efficiency up to 35%;
- In November, the bank appointed Saul Van Beurden to lead AI efforts; he also serves as co-chief executive of consumer banking and lending; and
- In August, the bank announced it would use Google Agentspace for agentic efforts.
Q4 results
Meanwhile, Wells Fargo’s efficiency ratio, or non-interest expenses divided by total revenue, landed at 64% in the fourth quarter, down 4 percentage points YoY.
Other Q4 results included:
- Revenue totaled $21.3 billion, up 4.5% YoY;
- Net income rose 5.6% YoY to $5.4 billion; and
- Headcount declined 5.7% YoY to 205,198.
The bank has reduced its headcount by more than 25% since Q2 of 2020, Chief Executive Charlie Scharf said during the call.
Scharf recently said that he expects AI to influence headcount decisions, noting AI’s potential to significantly boost efficiency.
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