Citi CEO says AI is driving two parallel races in banking: one to harness AI to boost revenue and operations, and a defensive push to shield the system from AI-enabled fraud, money laundering, and cyber threats.

McKinsey envisions agentic advisers transforming client interactions in retail and private banking, while Fraser cautions that disruption will accompany new roles.

Citi reiterates its commitment to serving corporate and institutional clients in China and supporting cross-border banking, underscoring China as a central part of its global network despite layoffs.

The bank lifted its forecast for global AI capital expenditure to about $8.9 trillion for 2026–2030, signaling rapid enterprise adoption and growth of agentic AI systems.

Industry context highlights defender risks like sophisticated AI-driven money laundering and deepfakes that threaten financial trust and security.

Fraser urges staff to embrace AI tools, using her own clerical-work roots to illustrate that jobs evolve rather than vanish.

Ultimately, the two races converge toward a shared objective: the bank that grows revenue fastest while fending off threats will prevail.

Fraser notes the financial sector will face job dislocations even as new roles emerge, emphasizing the need for proactive use of AI by employees to stay adaptable.

Citi announced a global plan in mid-2025 to cut roughly 3,500 technology roles, mainly in IT services, with some positions moved to other Citi tech centers, though locations weren’t disclosed.

Fraser argues AI-driven transformation won’t be perfectly timed and must be paired with proactive employee use of AI tools, making adaptability a key theme.

She points out that AI will displace some jobs but also create new opportunities, citing her own early-career experience with repetitive tasks evolving over time.

Citi has begun workforce adjustments tied to AI, including a 3,500-job cut in technology roles in China as part of broader cost-cutting and restructuring.