Barclays has reported a significant increase in its annual profits for 2025, with a 12% rise to £9.1 billion before tax. The bank also updated its goals, aiming for higher returns through 2028. A key part of this strategy is leveraging artificial intelligence (AI) to improve efficiency and boost profitability.

Boosting Performance with AI and Growth in the US

Barclays credits its growing US operations and cost-cutting measures for much of its recent success. The bank is actively using AI to make its processes more efficient. Unlike many companies still testing AI in small pilot programs, Barclays is integrating the technology directly into its core business systems. This approach helps lower costs and enhance returns in a tangible way.

Public statements from Barclays emphasize AI as a critical tool for maintaining lower expenses and stronger profits. The bank sees AI as essential, especially as economic conditions change. This shift indicates that AI is no longer just a futuristic idea for tech companies but a practical tool for traditional, highly regulated firms aiming to stay competitive.

How AI is Reshaping Cost Management

Barclays is using AI to cut costs by updating its technology infrastructure and rethinking how work gets done. Investments in AI tools are part of a broader plan to save money over several years. Many large banks still spend a lot on labor and legacy systems, which are costly to maintain.

By automating repetitive tasks like data processing, risk assessment, and customer service workflows, AI helps reduce manual work and overall expenses. This doesn’t always mean jobs are cut; in many cases, staff can focus on more complex tasks while routine work is handled by AI. This improves efficiency without necessarily reducing headcount.

From Investment to Results

Implementing AI takes time, and Barclays is combining these investments with structural cost reduction programs. This dual approach helps the bank stay financially healthy even when revenue growth alone isn’t enough to meet targets.

Looking ahead, Barclays plans to return more than £15 billion to shareholders between 2026 and 2028. These plans rely heavily on improved efficiency and higher profits driven by AI and other cost-saving initiatives. The bank’s focus on linking technology directly to profitability marks a clear shift from experimenting with AI to using it as a core part of its business model.

Overall, Barclays’ strategy shows how traditional financial firms are embracing AI—not just as a buzzword but as a real tool for operational improvement and growth. As more companies recognize AI’s potential, we can expect more industries to follow suit in making technology a central part of their business plans.

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