Japan’s MUFG Turns to AI to Cut Costs, Shifts Back-Office Work to India

Mitsubishi UFJ Financial Group (MUFG), Japan’s largest bank, is turning to artificial intelligence to handle back-office tasks. The move comes as Japanese banks expand their IT teams in India to reduce costs and improve efficiency. MUFG plans to use AI to automate routine work such as data entry and document processing. This will allow the bank to reduce its reliance on manual labor and speed up operations. At the same time, the bank is growing its technology workforce in India, where labor costs are lower than in Japan. Other major Japanese banks are following a similar path. They are hiring more engineers and IT staff in India to support digital transformation and manage growing data needs. The shift reflects a broader trend among global financial institutions: using AI and offshore teams to stay competitive while keeping costs down.