State Street Corp. expects to increase its software developers’ productivity by 30% to 40% in the next three years as it incorporates AI into its operations. 

“Rather than just reengineering legacy processes, we are taking an end-to-end view of the enterprise and are planning to rewire how we operate, embedding AI and modern technology into our core business processes,” Chief Financial Officer John Woods said during the Boston-based company’s earnings call.  

State Street said it is integrating AI by: 

• Placing agentic capabilities within its operating model; 

• Equipping software developers with AI tools; and 
• Providing employees with Microsoft CoPilot to integrate into daily workflows. 

State Street joins BNY in using AI to streamline developer productivity. BNY reported July 15 during its Q2 earnings call that AI is writing 40% of software code.  

Woods said allowing employees to integrate AI tools for knowledge retrieval, data document extraction, content creation and analytics has created a “rising-tide-lifts-all-boats story.” 

State Street also reported for Q2:  

• Net income of $1.1 billion, up 56% year over year; 

• Revenue of $4 billion, up 17% YoY; 

• Software and data revenue of $118 million, up 10% YoY; 

• Overall software services revenue of $166 million, down 14% YoY; and 

• Headcount was 50,596, down 3% YoY. 

State Street [NYSE: STT] shares were down 0.50% to $185.66 at market close today. The bank has a market capitalization of $51.38 billion. 

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