How are the world’s biggest investment banks betting big on artificial intelligence? In 2025, the biggest investment banks are no longer only competing on deal size, client portfolios, or global reach; they’re competing on algorithms. Artificial intelligence, once a back-office tool, is now reshaping the core of Wall Street’s operations, from trading floors to client meetings. Banks like JPMorgan, Goldman Sachs, Citigroup, Morgan Stanley, and Bank of America are investing billions into AI tools to streamline decision-making, enhance client service, and improve internal efficiency.
JP Morgan Chase: Scaling Smart Infrastructure
JPMorgan Chase is setting the standard with a sweeping implementation of proprietary AI tools across its global operations. CEO Jamie Dimon has been vocal about AI’s transformative potential, and the numbers back it up; over 200,000 employees now use AI in tasks ranging from investment analysis to fraud detection. The firm has developed its large language models to generate research summaries, draft client memos, and even assist legal teams with contract reviews. JPMorgan’s strategy is not just aggressive, it’s fully integrated. AI isn’t confined to one department; it’s woven into the entire corporate fabric, making the bank faster, leaner, and more responsive.
Citigroup: Reinvention Through Technology
Citigroup, long considered a step behind its peers in tech adoption, is using AI as a strategic lever to rebuild and redefine itself. Under the leadership of CEO Jane Fraser, the bank is doubling down on digitisation, with artificial intelligence playing a key role in compliance, risk, and most notably, investment banking. AI is now being used to screen M&A opportunities, model deal outcomes, and tailor pitches for clients based on nuanced data insights. This is part of a broader cultural shift within Citi, which has traditionally been more conservative in its innovation efforts. Now, they’re taking bold steps to modernise their operations, not just to catch up but to leap ahead. The bank’s use of AI is becoming a tool not just for growth, but for strategic redemption in a competitive landscape.
Goldman Sachs: A Calculated Approach
While some banks are making headlines for flashy AI rollouts, Goldman Sachs has taken a quieter, more calculated approach, true to its brand. Known for its elite quant teams and deep bench of PhDs, the firm is embedding AI into the core of its high-frequency trading, portfolio optimisation, and market prediction strategies. Rather than building tools for widespread use across the company, Goldman is tailoring highly technical AI models for small, specialised teams. These models assist in parsing massive datasets, identifying trading signals, and executing transactions with minimal lag. Goldman believes that the real value of AI lies not in mass deployment, but in precise, strategic implementation. It’s an approach that mirrors its overall identity: selective, technical, and focused on performance over publicity.
Bank of America: The Quiet Leader in AI Ethics
Often left out of the spotlight, Bank of America has quietly become one of the most mature AI adopters in the industry. Its digital assistant Erica continues to dominate in retail banking, but behind the scenes, the bank is leveraging AI for internal insights, helping bankers prepare for meetings, understand client behaviour, and even predict service needs. What sets BofA apart is its commitment to ethical AI. The bank has developed strong governance protocols to monitor how models are trained, how data is used, and how decisions are interpreted. In an era where trust is easily lost and regulators are paying close attention, Bank of America’s cautious but comprehensive approach may ultimately prove more durable than flashier competitors.
As AI continues to evolve, so too will the strategies of the institutions using it. The banks that succeed in this new frontier won’t be the ones with the shiniest tools, but the ones who know how to balance speed with caution, automation with accountability, and innovation with intelligence. The AI arms race on Wall Street is no longer about who adopts it first, it’s about who adopts it best.
Written By: Mia Quisumbing
Published On: 25th June 2025