Bank of America plans to invest $4 billion in AI and technology initiatives, as part of its overall budget for 2025. The bank has been utilizing AI since 2018 with its virtual assistant Erica, which serves millions and has significantly boosted productivity and efficiency. Further, more AI tools are being introduced to enhance employee training and customer service, making its approach an example for other financial institutions.
Bank of America is gearing up to invest $4 billion—almost a third of its technology budget for the year—into artificial intelligence and tech initiatives, according to a news release on April 8. This investment is a significant step for the financial services giant, which has been integrating AI into its operations since 2018 with the launch of its virtual assistant, Erica. Remarkably, this was years before ChatGPT made waves in the mainstream media.
Since Erica’s debut, Bank of America claims to have seen tangible benefits across various business units, showcasing how AI can have a real impact in financial services. BofA aims to set a benchmark for its competitors who are just starting to dip their toes into the world of AI. This tech investment fits snugly within a larger strategy to fold AI deeper into their operations, aiming to increase efficiency, boost employee productivity, and enhance client service, a trifecta that sounds promising.
The using of AI and machine learning began in earnest with Erica, which has reportedly managed over 2.5 billion interactions and serves about 20 million active users. The bank introduced an internal version of Erica in 2020, and, as luck would have it, this version flourished during the pandemic by helping staff manage tasks like password resets and device activations. It has now expanded to tackle a variety of topics, including health benefits and payroll forms.
This year, Bank of America is planning to broaden Erica for Employees’ features, incorporating generative AI tech that aims to simplify how employees access information about the bank’s products and services. It’s like giving the bank staff a superpower in terms of information access.
Furthermore, the bank’s learning platform, The Academy, is harnessing AI for employee training. In 2024 alone, staff members completed over a million simulated client interactions and received real-time feedback to improve their service skills. This hands-on training seems to be paying off.
Tools such as askMerrill and askPrivate Banking, which utilize the same AI technology behind Erica, are becoming more popular, racking up more than 23 million interactions in 2024, an increase of 1 million compared to the previous year. These platforms assist banking teams in finding relevant info and escalate issues to human experts when necessary.
In call centers, AI is also making waves by processing customer feedback efficiently. A generative AI system that summarizes client conversations is reducing the need for tedious manual transcription. Efficiency seems to be a strong theme here.
“AI is having a transformative effect on employee efficiency and operational excellence,” stated Aditya Bhasin, BofA’s chief technology and information officer. This significant adoption of AI worldwide is helping the bank ramp up its capabilities, boost staff efficiency and service to clients, and ultimately foster business growth.
It’s worth mentioning that Bank of America holds almost 7,400 patents and pending applications, with over 1,200 specifically focused on AI and machine learning. It’s clear they’re stepping forward into the future of technology in banking, and it looks like they’re doing it at full throttle!
In summary, Bank of America is committing $4 billion to integrate AI technologies across its services, reflecting confidence in the positive impact of these tools since 2018. With Erica and other AI initiatives improving efficiency and client service, the bank aims to spearhead innovation in financial services. Emphasizing a blend of employee productivity and customer interaction, it’s a strategic move that might just set a trend for others in the industry.
Original Source: www.pymnts.com
