Bank of America is spending $4 billion on new technology this year, including: artificial intelligence Chief Executive Officer Brian Moynihan said Tuesday the company will provide tools for both clients and advisors.
“AI is moving from an idea of cutting costs to improving the quality of customer interactions,” Moynihan said on a conference call with analysts, pointing to the bank’s AI advisor and customer insights tools, which it said have provided financial advisors with more than 6 million insights so far this year.
Big banks go all-in on AIfrom Hiring talent Introduce AI-powered tools and assistantsand has introduced hundreds of new use cases across numerous businesses, with more being developed.
Bank of America is the second largest bank in the United States, with total assets of $3.26 trillion. spends $12 billion a year In 2024, the bank plans to spend a quarter of that on a series of new technology initiatives. Achieved 2 billion interactions In April, bank customers used it about 2 million times per day.
The bank ranks 15th in the Evident AI Index, which assesses the AI readiness of the world’s largest banks, lagging behind competitors such as JPMorgan Chase, Wells Fargo, Goldman Sachs and Citigroup.
Strong second quarter performance
Bank of America beat Wall Street expectations in the second quarter, sending its shares higher on optimism for the rest of the year.
Bank of America is the most sensitive of its peers, given its huge consumer-banking business. Net Interest Income (NII)The company’s NII was $13.7 billion, down 3% from $13.83 billion in 2Q23. report Before the market opened on Tuesday, the bank hit a “trough” in its second-quarter NII, but Alastair Borthwick, the bank’s chief financial officer, reassured investors during an earnings call on Tuesday that the second quarter was a “trough” in the NII.
The bank expects NII levels to rise for the rest of the year and raised its outlook for the measure, the main way banks make money, to $14.5 billion for the year.
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Bank of America shares were up 3.5% on Tuesday morning.
The company on Tuesday reported sales of $25.4 billion, up slightly from $25.2 billion in the same period a year ago. The figure also beat analysts’ sales expectations of $25.22 billion, according to data compiled by FactSet.
But net income fell about 7% to $6.9 billion from $7.4 billion in the same period last year. Despite the decline, profits beat Wall Street expectations of $6.41 billion.
