Bank of America is making a big move in technology, but it’s not about flashy gadgets or quick tricks. Instead, they’re focusing on smarter solutions to improve banking for everyone. With a hefty $13 billion budget for 2025, the bank is putting a lot of money into AI and new tech, but more carefully and thoughtfully than some might expect.

Hari Gopalkrishnan recently took on the role of Chief Technology & Information Officer at BofA. He’s in charge of this massive tech budget and is emphasizing practical AI projects that solve real problems. Out of the total, about $4 billion is set aside specifically for AI and emerging technologies. The goal is to make banking smarter, not just more eye-catching.

AI at the Heart of BofA’s Strategy

Bank of America has already been a leader in AI with over 1,400 patents and its popular chatbot Erica. Erica has handled over three billion interactions, showing just how embedded AI already is in the bank’s daily operations. By early 2025, Erica was engaging with more than 20 million users, averaging 58 million interactions each month. It’s not just a chatbot; Erica provides personalized insights that help millions manage their money better.

The AI behind Erica isn’t just about volume. It’s about quality and usefulness. The bank has used AI to give tailored advice, help with budgeting, and track expenses. These features make it easier for clients to stay on top of their finances without needing to talk to a banker every time. The AI system is now a core part of how the bank serves its customers and advisors.

Smart Spending and Industry-Specific Tools

Gopalkrishnan is cautious about how the bank spends its AI budget. For example, he pulled back on voice-activated AI features after noticing many clients weren’t interested in talking out loud about their money. This restraint is unusual but refreshing in a world where AI hype often pushes for flashy features. Instead, BofA is developing specialized AI tools for different parts of its business.

For instance, “ask MERRILL” and “ask PRIVATE BANK” are AI tools that help financial advisors prepare for meetings. On the corporate side, there’s an AI assistant that quickly drafts briefing documents from various data sources. This kind of AI isn’t just for show; it’s designed to make work more efficient and help bankers serve clients faster. These tools are tailored to specific needs, making them more practical and useful.

While BofA is playing catch-up to peers like JPMorgan and Citi, it’s doing so with a more deliberate approach. Its in-house AI projects now reach a large portion of employees and clients across the U.S. The question remains: will these investments lead to real results? Gopalkrishnan expects to see tangible benefits by 2026 or 2027, but for now, it’s a high-stakes experiment in long-term AI deployment.

In the end, BofA’s cautious but strategic approach to AI aims to set a new standard for how banks use technology. If their investments pay off, we might see a future where banking is not just faster but more meaningful, personalized, and efficient for everyone.

Inspired by

• https://ai2people.com/bofas-quiet-ai-revolution-13-billion-tech-plan-aims-to-make-banking-smarter-not-flashier/