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BofA says AI makes its tech development 10% more efficient
The News
Bank of America CEO Brian Moynihan told analysts on October 14, 2026 that the bank has about 130 AI projects implemented, each with a payback, and that overall benefits run two to three times the expense over time. He named technology development, '$4 billion and change a year,' as a key pipeline project, saying 'we're 10% more efficient.'
Chandni Melwani
Founder & Editor
Oct 23, 2026 · 1 MIN READ
Know More
- — Wealth Management: CFO Alastair Borthwick lists AI tools among four drivers expanding capacity 'to deliver personalized advice at scale.'
- — Global Banking: a Gen AI tool for prospecting and onboarding launched in September, Borthwick says.
- — Investment banking: the bank invests in bankers, technology and AI tools, aiming to improve research, preparation and opportunity identification.
More than 200,000 Bank of America teammates use AI tools, Brian Moynihan said in the bank’s October 14 earnings release. On the earnings call that morning, Mike Mayo of Wells Fargo Securities, who had questioned Citi’s Jane Fraser on AI a day earlier, asked where AI could take the bank.
Moynihan got to AI after walking through the bank’s “total expense base,” which he said was “up $1.2 billion” year over year. “So AI has helped us,” he said. Of the projects implemented, he said, “None of them are huge contributors.” Right after describing the overall benefits as two to three times the expense, he said he expects “that number to go from the $250 million, $300 million this year to $700 million next year in terms of projects we put in the pipeline.”
The Read
Moynihan counts 'AI application' among the ways Bank of America holds expense growth, excluding wealth management incentives, Markets costs and remediation, near '1%, 2%' while opening five branches in Milwaukee. Its count of about 130 AI projects implemented will probably rise, since he ties his $700 million figure for 2027 to 'projects we put in the pipeline.'
Room for Disagreement
The rise to $700 million need not mean more projects. Moynihan named technology development, '$4 billion and change a year,' as 'a key one of those,' so a single project already under way could carry it, and Borthwick says 2027 guidance comes 'when we get into the fourth quarter.'
Related
Frequently Asked Questions
Is the $700 million what Bank of America spends on AI, or what it gets back?
Moynihan didn't say outright. His first mention follows the benefits ratio: 'Overall, the benefits are 2x to 3x, over time, of the expense you're giving out. We expect that number to go from the $250 million, $300 million this year to $700 million next year in terms of projects we put in the pipeline.' His second ties it to investment: 'we're going to continue to invest in driving the growth in the franchise, and AI is a major part of that, say, $300 million going to $700 million.'
What happened to Bank of America's headcount?
CFO Alastair Borthwick said that even as the bank adds headcount in its sales forces, headcount was 'down nearly 3,500 from a year ago as we automate processes and simplify work across the company.' He added, 'This means we don't need to hire quite as many people to refill roles.'
How many people use Bank of America's Erica?
The earnings release counts 24.2 million active Erica users, up 18% from a year earlier, a figure it says 'represents mobile and online activity across client-facing platforms powered by Erica.' On the call, Moynihan said 'Our Erica and others are capable of helping consumers on agentic basis,' and that the bank believes 'strongly the human in the loop.'
Sources
- Bank of America, 'Third Quarter 2026 Earnings Announcement' call transcript, October 14, 2026. Source for Brian Moynihan on the AI projects, payback, benefits, the $250 million to $700 million figure, technology development, expense growth and Erica, for Mike Mayo's question, and for Alastair Borthwick on AI tools by business, headcount and 2027 guidance.
- Bank of America, third-quarter 2026 earnings press release, October 14, 2026. Source for Moynihan's statement that more than 200,000 teammates use AI tools, and for 24.2 million active Erica users.
- Hero photo: Bank of America Corporate Center, Charlotte, North Carolina, by Ken Lund, Wikimedia Commons, licensed CC BY-SA 2.0 (cropped)
- Creative Commons Attribution-ShareAlike 2.0 Generic licence, which applies to the hero photo
Chandni Melwani
Chandni Melwani is the founder and editor of New in AI, covering AI agents, M&A, and enterprise adoption. She holds a Master's in Management of Artificial Intelligence from Queen's University and brings a practitioner's perspective from her work in Data and AI leadership.
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