Lloyds Banking Group has unveiled plans to cut costs by £2 billion through a new four-year strategy centred on artificial intelligence, digital investment and productivity gains.
The UK’s largest lender said its “Accelerate 2030” programme would use AI to deliver a “step change” in efficiency, including the deployment of autonomous AI agents across customer service and internal operations.
The announcement came as Lloyds reported £4.3 billion of pre-tax profit for the first half of 2026, up 23% from the same period a year earlier.
Chief executive Charlie Nunn said around half of the bank’s AI activity would focus on expanding and improving customer services, while the remainder would help employees complete tasks more efficiently.
The strategy is expected to require staff to reskill and redesign working practices, although Lloyds did not provide an estimate for the number of roles that could be created or lost.
Lloyds also plans to invest £13 billion in digital systems, technology infrastructure and new wallet applications for its 28 million customers.
The bank already uses AI to process customer complaints and said the technology generated a £50 million benefit in 2025. It expects a further £100 million benefit during 2026.
First-half net interest income increased 9% to £7.3 billion, supported by higher interest rates.
The profit increase prompted renewed calls from trade unions for the government to raise the banking surcharge, which currently adds 3% to corporation tax on bank profits above £100 million.
