Bank of America to Spend 4 Billion on AI and New Tech Initiatives in 2025
Bank of America is allocating 4 billion or nearly a third of its overall technology budget for this year toward new initiatives including AI
Bank of America (BofA) revealed plans to allocate $4 billion—nearly a third of its 2025 technology budget—toward AI and new tech initiatives, according to an April 8 news release. The move follows years of AI integration, including its Erica virtual assistant, launched in 2018.
Key AI-Driven Gains at BofA
- Erica for Employees: Over 90% of BofA’s 213,000 staff use this internal AI chatbot, cutting IT support calls by 50%.
- Coding Efficiency: Developers using AI-assisted tools saw 20% productivity gains.
- Client Engagement: AI-prepared materials save tens of thousands of hours annually, redirecting time to client interactions.
- Call Center Optimization: AI tools personalize customer service, reducing call handling times.
- Research Acceleration: Sales teams use generative AI to quickly summarize market research.
Scaling AI Across Operations
BofA’s Erica has handled 2.5 billion interactions since 2018, serving 20 million users. The internal version, introduced in 2020, expanded during the pandemic, aiding tasks from IT support to HR queries. Plans are underway to enhance it with generative AI for broader employee use.
Training and Feedback
- The Academy: BofA’s training arm used AI for 1 million simulated client interactions in 2024, offering real-time feedback.
- askMerrill/askPrivate Banking: These tools, powered by Erica’s tech, logged 23 million interactions in 2024 (+1M YoY).
- Call Center AI: Generative AI summarizes client calls, eliminating manual transcription.
Leadership Perspective
"AI is having a transformative effect on employee efficiency and operational excellence," said Aditya Bhasin, BofA’s CTO. "Our use of AI at scale enhances capabilities, improves productivity, and drives growth."
Patent Portfolio
BofA holds 7,400 patents and pending applications, including 1,200 focused on AI and machine learning.
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Related: Bank of America on Real-Time Payments.
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About the Author
Dr. Lisa Kim
AI Ethics Researcher
Leading expert in AI ethics and responsible AI development with 13 years of research experience. Former member of Microsoft AI Ethics Committee, now provides consulting for multiple international AI governance organizations. Regularly contributes AI ethics articles to top-tier journals like Nature and Science.