Bank of America plans to double its AI budget. Staff shrank 4,000 without layoffs.
Bank of America's chief executive, Brian Moynihan, outlined the plan at a Barclays conference the week before, Banking Dive reported.
About 140 AI uses are in place, "at a cost of $400 million, generating a benefit of $800 million," he said.
Moynihan said the bank started the year with about 213,000 employees and has 209,000 now. Staff leave at a rate of about 8.5% a year. "We're not laying off anybody," he said. The bank manages its hiring carefully instead, he said.
A co-president told a BofA Securities conference on 23 September that software has produced the clearest gain so far. The bank's 20,000 developers use coding agents, AI tools that write and fix code, and he put the productivity gain at about 15% to 20%.
The bank says Erica, its AI assistant for customers and staff, handles the work of about 11,000 people. About 95% of employees have access to AI tools.
Its technology chief said the bank will probably spend twice as much on AI next year because staff ideas are now showing a return. The bank spends about $4 billion a year on new technology.
Would your finance team double an AI budget on a claim of $400 million in and $800 million out?
Image: AI-generated.
Sources
For your next steering committee
- 1Ask your integrator to name the people on your programme and to confirm which of them are staying.
- 2Ask what the contract says about replacing key people, and who approves a replacement.
- 3Ask where knowledge of your configuration is written down, outside the heads of the people who built it.
Issue 01 of the ERP LEADERS brief puts a timeline, the three-number review and six questions on one page. Read issue 01
Welcome back. · Issue 01
