KeyBank, a subsidiary of KeyCorp, is leveraging conversational artificial intelligence (AI) to revolutionize its call center operations, delivering significant cost savings and improved efficiency. As banks increasingly adopt AI technologies to streamline processes, KeyBank is positioning itself at the forefront of this transformation.
Cost Savings Through AI
During KeyCorp’s fourth-quarter 2025 earnings call, CEO Christopher Gorman highlighted the financial impact of implementing AI in call center operations. According to Gorman, calls handled by AI cost approximately $0.25 each, compared to $9 per interaction when handled by human agents. This dramatic reduction in costs represents a key advantage of deploying conversational AI.
KeyBank’s investment in technology and operations has increased substantially, rising from a previous spending range of $800 million to $900 million annually to around $1 billion. These funds have been allocated to advance the bank’s digital and AI capabilities. Gorman noted that, while it is still early to fully quantify AI-driven efficiencies, the bank has already identified roughly $100 million in annual savings through continuous improvements. These savings are being reinvested to support ongoing digital transformation efforts.
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Enhancing Customer Interactions
Conversational AI plays a pivotal role in modernizing traditional call centers, which have long faced challenges such as inefficient interactive voice response systems and staffing bottlenecks. By interpreting customer intent and quickly resolving or routing inquiries, AI solutions allow for more streamlined and responsive customer interactions. This approach not only reduces operational costs but also enhances the overall customer experience.
A Broader Industry Trend
The use of conversational AI is not unique to KeyBank. Other banks around the world are also incorporating advanced AI technologies to improve service delivery and reduce costs. In South Korea, KakaoBank utilizes conversational AI powered by Microsoft Azure OpenAI. This system serves as a primary interface for customer inquiries within KakaoBank’s mobile app, effectively reducing reliance on live agents while maintaining quick response times. By embedding AI directly into the user experience, KakaoBank keeps customers engaged within its digital ecosystem, where service costs are lower and engagement is higher.
In the United Kingdom, Lloyds Bank has adopted a complementary approach with its generative AI platform, Athena. This tool supports both customers and employees by automating responses to common queries and enabling staff to access information more efficiently. Lloyds emphasizes that Athena is not intended to replace human agents but rather to augment their capabilities, enabling faster resolutions and reducing manual effort. Additionally, Lloyds plans to launch an AI-powered financial assistant app in 2026 to offer personalized financial coaching.
Expanding AI Beyond Call Centers
KeyBank’s deployment of conversational AI reflects a growing trend among banks to adopt more advanced AI systems. Other institutions, such as Wells Fargo, are scaling AI across various functions, including customer support and internal operations. Through its partnership with Google Cloud, Wells Fargo has implemented AI agents to handle tasks like balance inquiries and debit card replacements, freeing employees to focus on higher-value interactions. Internally, these AI solutions streamline workflows by assisting with tasks such as trade inquiries and document reviews, contributing to both cost savings and increased operational agility.
A Strategic Advantage
As AI technologies continue to evolve, banks are recognizing their potential not just as cost-saving tools but also as value generators that enhance customer engagement. According to a report by PYMNTS Intelligence, 72% of bank customers say personalization influences their choice of bank. By embedding conversational AI into their operations, banks like KeyBank aim to deepen customer relationships and capture actionable insights while maintaining competitive operational costs.
KeyBank’s adoption of conversational AI is a clear example of how financial institutions are embracing innovation to optimize processes and deliver better outcomes for both customers and shareholders. As AI becomes more deeply integrated into banking operations, its role in shaping the future of the industry will only continue to grow.
