Bank of America Strives for AI Productivity While Upholding $25 Hourly Wage Promise

Brian Moynihan, CEO of Bank of America, has recognized that artificial intelligence (AI) is transforming the company’s workforce, with certain divisions experiencing reductions as advanced technologies are integrated into everyday operations. At the same time, the bank increased its minimum hourly wage in the U.S. to $25, ensuring that the annual salary for full-time staff now exceeds $50,000. This move fulfills a promise made in 2021 and establishes

as a trailblazer in setting corporate wages across the nation.

This pay raise is a component of the bank’s long-term strategy to foster employee advancement and support community development. Since 2017, Bank of America has boosted its minimum wage by almost 67%, demonstrating a sustained commitment to equitable pay. The updated wage policy will affect thousands of workers nationwide, including both full- and part-time staff. Beyond wages, the bank provides a variety of benefits, such as tuition support, opportunities for professional growth, and stock grants, with nearly $5.8 billion in stock distributed since 2017.

Alongside these workforce changes, Bank of America is rapidly increasing its investment in AI technology, allocating $4 billion for AI and innovation initiatives in 2025—about one-third of its $13 billion yearly technology spending. AI solutions are already enhancing efficiency in fields like software engineering, customer support, and employee training. For example, developers using AI-powered coding tools have achieved over 20% higher productivity, and customer service agents are utilizing AI to offer more tailored experiences. In 2024 alone, AI-driven platforms including askMERRILL and askPRIVATE BANK facilitated more than 23 million interactions.

The internal AI tool “Erica for Employees” is now used by more than 90% of the bank’s staff and has contributed to a drop of over 50% in IT help desk requests. Originally introduced during the COVID-19 pandemic for technical assistance, the assistant now also addresses benefits and payroll questions. Going forward, the bank intends to enhance Erica’s features through generative AI to provide more comprehensive employee support.

AI is also becoming central to employee learning and development efforts. The bank’s Academy program leverages AI-powered conversation simulators, allowing staff to practice client discussions—conducting over a million simulations in 2024 alone. These measures highlight Bank of America’s proactive approach to reskilling and reassigning workers as AI reshapes job roles.

The bank’s commitment to innovation is further reflected in its expanding patent holdings, which now include close to 7,400 active and pending patents, with more than 1,200 focused on AI and machine learning. This underscores Bank of America’s dedication to developing advanced technology for financial services.

While AI is streamlining processes and minimizing repetitive work, the bank underscores the necessity of human judgment and responsible AI use. Moynihan points out that the core challenge is to retrain and reposition staff to meet the organization’s changing demands. Over the next five years, the bank plans to recruit 10,000 veterans and 8,000 graduates from community colleges, creating pathways to stable careers and helping to bolster economic opportunities in underserved areas.