US banks expand AI use to boost productivity, cut jobs

Major US banks are increasing their use of AI to improve productivity, with some executives noting that job cuts are likely in the future.

JPMorgan Chase’s executive discussed AI strategies at the Goldman Sachs financial services conference, while leaders from other banks have shared their views in different forums.

JPMorgan Chase said it doubled productivity to 6% in certain areas with AI, while Citigroup reported a 9% rise in coding productivity.

Wells Fargo’s CEO said AI has helped the bank achieve more without staff cuts so far, but expects opportunities to operate with fewer people in the future.

PNC Financial’s headcount has remained steady despite growth, with its CEO crediting automation and branch optimization, and noting AI could accelerate future efficiency.

Goldman Sachs is focusing its AI efforts on sales, client onboarding, lending, regulatory reporting, and vendor management, and has warned staff about possible job cuts.

Bank of America plans to invest billions in AI and other technologies to boost revenue and productivity.

🔗 Source: Reuters

🧠 Food for thought

Implications, context, and why it matters.

Banks stay vague on AI’s payoff

JPMorgan uses Connect Coach (an internal guidance and recommendation tool for financial advisors) to lift output. Mary Callahan Erdoes, head of asset and wealth management, said productivity is up 3.4x. The bank has not named roles that could go or set headcount targets tied to these gains 1.
Wells Fargo and PNC Financial report efficiency from AI. Wells Fargo’s CEO plans to operate with fewer people. PNC kept headcount flat while growing, yet neither bank has pinned down expense cuts or timing.
Official transcripts still lack bank-by-bank figures for AI expense cuts. Investors want profit and loss (P&L) impact, and operating leaders need timing for workforce changes. That gap makes it hard to sort real change from anecdotes.

AI governance vendors can win bank business by tracking evolving OCC guidance

The Office of the Comptroller of the Currency (OCC) labeled AI an emerging risk in December 2023 2 3. Banks must identify and control AI risks under existing safety and soundness rules. They also need to measure and monitor those risks as AI shifts from input provider to an autonomous decision-maker.
Acting Comptroller Michael Hsu, the OCC’s interim chief, warned that rapid AI adoption without solid controls can trigger instability 2 4. He drew parallels to past crises. The OCC also asked academics to present research on June 6, 2025.
Vendors that sell AI governance and compliance software can meet this demand. Model risk management helps here by validating models to prevent errors, then monitoring for bias. Features that set clear controls and accountability will match OCC priorities. That can help large banks plan enterprise deals.