Citigroup and Ant International Pilot AI-Powered FX Risk Management Tool
Citigroup has teamed up with Singapore’s fintech company Ant International to test an artificial intelligence solution aimed at improving foreign exchange (FX) risk management. Ant International is part of Ant Group, the global fintech organization founded by Jack Ma, with operations spanning Asia, Europe, the Middle East, and Latin America.
From Aviation to Broader Business Applications
The pilot program combines Citigroup’s Fixed FX Rates solution—already popular with e-commerce clients—with Ant International’s Falcon Time-Series Transformer (TST) model. This AI-driven forecasting tool features nearly 2 billion parameters and helps companies lower hedging costs on currency risks.
Initially created for the aviation sector, the program has been successfully tested with major Asian airlines. It demonstrated tangible cost reductions in fixed FX hedging for online ticket sales, signaling strong potential for wider risk management use cases.
Kelvin Li, General Manager of Platform Tech at Ant International, emphasized the cost efficiency AI brings to FX hedging. He also highlighted how working with Citi expands access to this technology across industries.
How Major Banks Use AI in Finance
The banking industry has increasingly adopted AI for specific, practical uses. Examples include:
- Morgan Stanley: Developed a chatbot to support financial advisors in client interactions.
- Bank of America: Uses its virtual assistant Erica to improve day-to-day retail banking and detect suspicious transactions more accurately.
- JPMorgan Chase: Employs AI for real-time risk assessment, regulatory compliance, and automating legal document analysis through its COiN platform.
- HSBC: Implements AI for anti-money laundering efforts, speeding up detection by 20% compared to older systems.
This trend is driven by banks competing to improve efficiency and cut costs. Regulatory bodies have also encouraged AI adoption. For instance, the Federal Reserve projected in 2024 that AI could save the banking sector up to $80 billion annually by 2030.
For management professionals looking to understand AI’s role in finance, exploring courses in AI applications and financial technology can provide valuable insights. Resources like Complete AI Training’s finance-focused AI tools offer practical knowledge on integrating AI into financial operations.
```Your membership also unlocks:
