CaixaBank plans to invest heavily in artificial intelligence (AI) as part of its ambitious €5 billion Strategic Plan, called Cosmos. The bank aims to enhance both customer service and its internal operations using AI technologies over the next two years.
To support this initiative, CaixaBank will expand its tech workforce, adding 1,000 young IT professionals and another 2,000 employees in various non-IT roles within three years. Through Cosmos, the bank expects to implement conversational and operational AI to assist both employees and customers effectively. This means banking professionals will be better equipped to serve clients, while customers will have more digital self-service options to manage their finances efficiently.
Automation is also on the agenda. CaixaBank plans to streamline business processes, reduce the administrative burden in branches, and improve decision-making for its staff. The bank is investing in real-time information access and data analytics through cloud technologies, fueled by AI and machine learning.
With around 12 million digital customers, CaixaBank operates its own technology branch, CaixaBank Tech. This focus on tech isn’t unique to them; the trend is evident across the banking sector, especially in the UK.
In the UK, the Bank of England and the Financial Conduct Authority (FCA) have been assessing how local financial firms implement AI and machine learning. A recent survey of 120 companies revealed that three-quarters are already utilizing AI in some capacity, marking a significant 53% rise from 2022. Major banks, insurers, and asset managers are all in the mix.
Some of the most common applications of AI involve low-risk areas. According to Sarah Breeden, deputy governor of financial stability at the Bank of England, 41% of banks are using AI to optimize internal processes, while 26% implement AI to improve customer support. Additionally, many firms are leveraging AI to tackle external threats, with 37% deploying it against cyber attacks, 33% against fraud, and 20% against money laundering.
In terms of credit risk assessment, 16% of surveyed firms are currently on board, with 19% planning to adopt it in the next few years. Only 11% are using AI for algorithmic trading, with 9% preparing to follow suit.
However, this swift integration of AI brings with it the risk of job displacement. Bloomberg Intelligence estimates that hundreds of thousands of jobs could be lost as AI takes over roles that humans currently handle. Chief information officers expect to cut about 3% of their workforce on average, with many anticipating reductions between 5% and 10%, particularly in back and middle-office positions.
Meanwhile, frontline workers in bank branches also face an uncertain future as large institutions continue to shut down locations across the UK.