Societe Generale bets on AI to slash costs by hundreds of millions in sweeping 2029 plan

Societe Generale just laid out a roadmap to cut its cost base below €16.3 billion by 2029, and artificial intelligence is doing a lot of the heavy lifting. The French bank expects AI initiatives alone to trim roughly €500 million from its IT spending, part of a broader plan targeting €1.9 billion in gross savings over the next few years. The numbers behind the overhaul SocGen’s strategic roadmap, unveiled on September 21, paints a picture of a bank trying to do more with less. The €16.3 billion cost base target represents roughly a 2% decrease from the bank’s estimated 2026 figures. On a net basis, after reinvestment and other adjustments, the savings come to approximately €300 million. SocGen is aiming to push its cost-to-income ratio below 55% by 2029, down from roughly 60% today. On the revenue side, the bank is targeting a compound annual growth rate of about 3% through 2029. Return on tangible equity is pegged at 13-14% for 2029, with ambitions to push it above 15% after that. Workforce changes are part of the equation too. SocGen plans to reduce approximately 1,800 roles in France, primarily through natural attrition rather than layoffs. From homegrown AI to Anthropic and Mic...