AI could reduce turnover in 2024, Bank of America CEO says
Bank’s noninterest expense up 14% YoY to $17.7B, driven by people, tech
Implementation of AI could reduce turnover at Bank of America, Chief Executive Brian Moynihan said during today’s fourth-quarter earnings call.
“We can always hire a little less if we see the efficiencies coming through and redeploy the people we have,” Moynihan said.
Headcount stood at 212,985 at the end of Q4, down 1.7% year over year, according to the bank’s earnings supplement.
BIGGER PICTURE: Bank of America has invested in and developed AI for multiple use cases, ranging from cybersecurity to adding efficiency in the organization.
The bank deployed its AI-driven chatbot Erica, internally to save employees thousands of hours performing menial tasks, Moynihan said during the bank’s Q1 2023 earnings call in May.
Additionally, the bank’s tech employees are innovating within AI, according to a September release on its latest patents. In the first half of 2023, the bank was granted 762 AI and machine learning patents, a 22% YoY increase in related patents.
BY THE NUMBERS: In Q4, Bank of America reported:
- AI-driven chatbot Erica’s total users jumped to 18.5 million, up 12% YoY;
- Zelle transaction volume of $101 billion, up 24% YoY;
- Active digital usership of 46 million, up 5% YoY;
- Total revenue of $22 billion, down 10% YoY; and
- Noninterest expenses (including technology) of $17.7 billion, up 14% YoY.
NOTEWORTHY: Corporate and commercial banking added 2,500 clients in Q4, double the number for Q4 2022, Moynihan said.
“The digital tools our customers have access to across the board help us enable this [commercial banking] activity at lower cost,” which helps the bank in growing its operations, he said.
The bank has added:
- Data insights to its CashPro platform this month; and
- AI capabilities to its CashPro Chat function in September.
FUTURE LOOK: Tom Durkin, global product head of CashPro in Global Transaction Services at Bank of America, will speak on Tuesday, March 19, at Bank Automation Summit U.S. 2024 in Nashville, Tenn.
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Get ready for the Bank Automation Summit U.S. 2024 in Nashville on March 18-19! Discover the latest advancements in AI and automation in banking. Register now.
