Consumer goods and financial services conglomerate GraceKennedy Limited is doubling down on its digital transformation drive, including the use of artificial intelligence, as investments in digital technology have contributed to growth.

GraceKennedy Group CEO Frank James highlighted in an earnings call on Tuesday (November 25) that the company has employed the use of artificial intelligence (AI) at the governance level and will be deploying the technology throughout the multinational organisation.

“I also shared with you our focus on AI, and our AI focus started with a big focus on governance and putting in that framework, and as we have gotten that framework workin,g we then moved to getting our staff comfortable with the concept of AI and understanding what AI can mean for them and the organisation,” he shared.

“We are now moving into the phase where we are actually rolling out use cases for AI in the respective businesses, and while there are number of ways in which AI can be used, there are a few areas that we are focused on as a group; one is productivity,” James continued.

The group will also use AI to amplify its fraud detection capabilities, reduction in losses, and eliminate mundane tasks. James added that going forward, GK will also use the technology to improve customer interactions.

“AI remains a focus, and we’re putting in the resources behind it to make that a reality,” the GK Group CEO reiterated.

A global transformation

Aside from artificial intelligence, James pointed out that the company has been reaping the benefits of digital tools within its banking and investments, insurance, and money services business segments.

In the banking and investments segment, First Global Bank grew its loan portfolio as it increased its focus on efficiency and the use of technology. For the nine months ended September 30, 2025, that business line generated J$8.52 billion in revenues or 4.9 per cent more than the comparative period in the prior year.

Still, the greater investment in technology is in the area of money services, where global trends are forcing the company to become more agile. In this regard, James noted that the division is now undergoing transformation.

“I shared with you earlier in the year that this business is going through a transformation globally, where prices are coming down for sending money, and this is not a bad thing because it means that more people will be able to send money across the island and across the world to their loved ones. So this is a good move, but it requires that we transition our business as those prices come down and we’re well positioned to do that,” James shared.

“As this business changes globally, it requires that we change, and a big part of that change is gonna come in the way we deliver digital services. Now, upfront there is an investment to drive digital, so we’re investing in digital, and it requires scale to really see the benefit of that,” he added.

According to the CEO, GK Money services generated 12 per cent of revenue through its digital channels over the nine months compared to eight per cent in the prior year’s corresponding period. Notwithstanding, revenue from GK Money Services dipped by six per cent, reaching $6.17 billion as at September 30, 2025.

James explained that while the business has seen an increase in transaction volumes as more features are added to the GK ONE mobile wallet, which facilitates Western Union remittances and bill payments. In February, GK Money Services rolled out its SEND feature, allowing Jamaicans to remit funds locally and overseas. In addition, the direct-to-wallet feature allows users to receive funds into their bank account or onto a debit card, eliminating the need to visit a Western Union outlet.

Subsequently, GK Money Services added a crowdfunding feature to the app, which enables users to support various charitable causes. One such is the support of high schools which suffered damage from the passage of Hurricane Melissa.

GK ONE has expanded into Guyana with Mobile Money Guyana. It will launch in Trinidad and Tobago and Cayman Islands.

Cost-benefit of digital transformation

Commenting on the decline in revenues, Group Chief Financial Officer Andrew Messado pointed out that while GK Money Services’ transaction volumes have increased, transaction values have decreased.

As the group continues its focus on digital transformation, Messado also pointed out that shareholders will see increased spending on both the capital and income statement sides.

“We would have had increases in technology costs. So you’ve heard that we’re focused heavily on technology, both our digital transformation strategy as well as artificial intelligence and other technological improvements. And so there is quite an investment related to that, both in capital and operating costs, and then you’d have the amortisation of those capital costs in our income statement,” he shared.

The CFO anticipates that the investment in the digital strategy, especially with the money services segment and the roll-out of the GK ONE app, will begin to drive additional revenues.

“So, what is happening is that we do have fairly significant increases in technology costs and what we need now is to ensure that, having made those investments in Jamaica, in the Guyana setup, and for the two countries that we have coming on shortly, we have to get the benefit of those services. So initially, of course, you’ll have the cost of implementing and the cost of rolling out, but going forward, you’ll have revenue coming in to offset these costs,” Messado added.