Citi and Ant International, a subsidiary of China’s fintech Ant Group, have launched a pilot program that employs artificial intelligence to help clients manage foreign exchange risk.

This initiative combines Citi’s Fixed FX Rates solution, often used by businesses in e-commerce sectors, with the Falcon Time-Series Transformer model from Ant International. This AI-driven tool aims to reduce hedging costs for clients.

The program has already been applied in live transactions, particularly benefiting Asian airlines that are aiming to decrease expenses related to fixed FX hedging for online ticket sales.

According to the companies involved, this pilot project achieved significant savings; one airline client saw a 30% reduction in hedging costs using Ant International’s tools.

Global Expansion

This launch comes six months after Citi began deploying new AI technologies for its employees across eight countries. This move was part of an effort to extend these technological advancements worldwide.

Banks Adopting AI Technologies

Other financial institutions are also increasingly integrating AI into their operations. For example, Morgan Stanley introduced a chatbot designed to support financial advisors during client interactions, while Bank of America uses its virtual assistant, Erica, to handle the daily transaction needs of retail clients.