Deutsche Bank cuts tech project times from years to months with AI investments

AI cuts tech project times from years to months, says Deutsche Bank exec

Deutsche Bank is experiencing a remarkable transformation through artificial intelligence. What used to take two years can now be accomplished in just three to six months. Backlogs that once seemed insurmountable are being cleared in weeks. The bank is leveraging AI to accelerate tech projects and streamline data analysis. Artificial intelligence is accelerating productivity at Deutsche Bank, enabling tasks that once took years to be completed within months, a senior executive said on Thursday. The German lender is using AI to speed up technology projects and tackle a backlog of internal work, but it is keeping a wary eye on rising computing costs. "We're seeing things that were two years that ⁠are ⁠now getting done in three to six months... we know the productivity is there," said Denis Roux, chief information officer, investment bank at Deutsche Bank, speaking on the sidelines of the bank's Bank on Tech event in Bengaluru, India. He declined to quantify the impact. Backlogs that once took months are now being cleared in weeks, Roux said, adding, "All I'm hoping to do is use these tools to continue to ⁠make things more efficient." The bank has around 9,000 employees in its technology function in India, accounting for about 45% of its global tech workforce. Global ⁠firms are increasingly using their Indian hubs for higher-value functions, including finance, software development and R&D. Still, managing the cost of AI adoption is a priority as providers move to usage-based pricing models, Roux said, likening it to the discipline companies developed during their move to cloud computing. AI firms such as Anthropic and OpenAI are increasingly shifting to token-based pricing that charges customers based on usage, instead of a subscription-based service. Engineers at Deutsche Bank are allocated quotas for tokens and can request additional capacity but have to demonstrate value, with learnings then shared across the organisation, Roux said. "We monitor the usage patterns... we ⁠don't want to slow people down and want them to keep going, but we also want to get a return," he said. The bank is also developing AI tools to automate tasks like extracting and analysing financial data, as well as applications that link external events such as geopolitical or market developments to its portfolio to understand exposure. Roux said the bank remains cautious about deploying AI for everything, using simpler models for routine tasks and also assessing where traditional solutions may be more effective.

Deutsche Bank Points to Proven Returns on AI Investments | PYMNTS.com

Roux, who is Deutsche Bank's chief information officer, investment bank, told Reuters that the bank uses simpler models for routine tasks and is cautious about deploying the technology for everything. The bank is currently developing AI tools to automate the extraction and analysis of financial data and to link external events to its portfolio to gauge its exposure, according to the report. To manage the cost of AI, Deutsche Bank allocates tokens to engineers and allows the engineers to request more if they can demonstrate value, Roux said, per the report. "We don't want to slow people down and want them to keep going, but we also want to get a return," Roux said in the report. The PYMNTS Intelligence report "Financial Services Pulls Ahead in the Enterprise AI Race" found that 85% of financial services and insurance firms with at least $1 billion in annual revenue plan to increase their AI budgets over the next 12 months. Asked what justifies their investments in AI, 65% of these firms pointed to productivity and efficiency gains, 65% highlighted strategic/competitive positioning, and 55% cited risk reduction and compliance. "These are outcome-oriented justifications that require AI investments to demonstrate measurable returns," the report said. Asked about their most adopted AI tasks, 65% of financial services and insurance firms spotlighted revenue recognition and accounting close, 60% noted credit risk assessment and scoring, and 60% said sales forecasting and pipeline optimization. "The industry's most adopted use cases cluster in structured, auditable back-office functions: the internal operations that keep a business running but that customers never directly see," the report said. Nvidia said in a recently released report that nearly 90% of financial institutions are deploying or assessing AI and that 65% already use the technology. KPMG found that 70% of banking CEOs plan to allocate 10% to 20% of their budgets to AI in the coming year. Twenty-four percent of these CEOs said the top benefit of AI adoption is enhanced cybersecurity.