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Citigroup Uses AI to Accelerate Onboarding and System Upgrades

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Citigroup is deploying artificial intelligence to streamline operations, focusing on faster account onboarding and modernization of legacy systems.

According to Tim Ryan, AI tools are being used to migrate data from outdated infrastructure, automate software development tasks and accelerate system testing. These improvements are part of a broader effort to enhance productivity and meet regulatory requirements.

One of the most immediate impacts has been in client onboarding. AI-powered document processing has reduced review times for account openings in the bank’s U.S. services division from over an hour to approximately 15 minutes, significantly improving efficiency.

The initiative also supports Citigroup’s long-term strategy to reduce reliance on external contractors. Previously, contractors made up about 50% of the bank’s technology workforce. The company aims to bring that figure down to 20% by hiring more in-house engineers and strengthening internal capabilities.

Citigroup has expanded its technology workforce to roughly 50,000 employees and continues to increase investment in digital infrastructure. The push toward internal development aligns with its goal of deploying standardized AI tools across business units.

The bank is prioritizing automation in key operational areas, including client and employee onboarding as well as compliance processes such as “know your customer” (KYC) checks.

These efforts come as U.S. regulators, including the Federal Reserve and the Office of the Comptroller of the Currency, continue to require improvements in risk management, data governance and reporting accuracy following consent orders issued in 2020.

Citigroup’s approach reflects a broader trend in the banking sector, where AI is increasingly used to optimize operations, reduce costs and adapt to evolving regulatory and competitive pressures.

Indian IT Firms Brace for Weak Quarter Despite Currency Boost

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India’s leading IT services companies, including Tata Consultancy Services, Infosys and HCLTech, are expected to report subdued fourth-quarter results, with growth driven more by currency effects than underlying demand.

Brokerage estimates suggest revenue and profit will rise roughly 10% year-on-year. However, much of that increase is attributed to the depreciation of the Indian rupee, which boosts earnings when dollar-denominated revenues are converted into local currency.

On a constant currency basis—excluding exchange rate effects—growth remains weak, with top firms expected to post only modest gains. Analysts highlight ongoing macroeconomic uncertainty, geopolitical tensions and cautious client spending as key factors limiting expansion.

Discretionary IT spending continues to lag, particularly in sectors such as retail, healthcare and technology, while banking and financial services remain relatively stable. Longer deal cycles and a shift toward cost optimisation projects are also constraining revenue momentum.

The sector is also facing structural concerns related to artificial intelligence. New capabilities from firms like Anthropic and Palantir are raising questions about whether traditional IT outsourcing models could be disrupted.

Forecasts for the next fiscal year remain conservative. Infosys is expected to guide for 2%–4% growth, while HCLTech may project 4%–6%, reflecting continued caution among enterprise clients.

The broader $315 billion Indian IT sector, employing nearly 6 million people, has struggled to regain the double-digit growth rates last seen in 2023. Stock performance reflects these concerns, with IT shares significantly underperforming the wider market this year.

Analysts note that valuations now imply low growth expectations, meaning even modest improvements in outlook could support share prices. However, a sustained re-rating will depend on whether companies can demonstrate resilience and adaptation in an AI-driven environment.

Oracle Names New CFO Amid Rising AI Investment Pressure

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Oracle has appointed Hilary Maxson as its new chief financial officer, signaling a strategic shift as the company accelerates spending on artificial intelligence and cloud infrastructure.

Maxson joins from Schneider Electric, where she served as group CFO and helped guide the firm’s transformation into a digital energy and technology-focused business. Her appointment restores a formal CFO role at Oracle for the first time since 2014, when Safra Catz assumed expanded leadership responsibilities.

The move comes at a time when investors are closely monitoring Oracle’s aggressive capital expenditures tied to AI. The company expects to spend around $50 billion in its current fiscal year—more than double the previous year—as it builds out infrastructure to support growing demand for AI-driven services.

This expansion has put pressure on Oracle’s financials. The company reported a negative free cash flow of $394 million in fiscal 2025, a sharp contrast to the $25.3 billion it generated between 2022 and 2024. It has also indicated plans to raise up to $50 billion through a mix of debt and equity to fund continued growth.

Maxson’s experience in energy and infrastructure is seen as particularly relevant, given the increasing overlap between AI computing and power-intensive data center operations. Analysts suggest her appointment may help reinforce financial discipline as Oracle balances rapid expansion with profitability concerns.

The leadership change also aligns Oracle more closely with industry peers, many of whom maintain dedicated CFO roles amid escalating AI investment cycles. Meanwhile, the company has also implemented workforce reductions as part of broader cost realignment efforts.