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Banks Stop Counting AI Hours and Start Counting Returns

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Banks Stop Counting AI Hours and Start Counting Returns

Bank of America CEO Brian Moynihan said 130 to 140 AI projects cost $400 million and generate $800 million in benefits, and the bank plans to double its AI budget next year.

Société Générale expects AI to deliver up to $669 million of its $2.1 billion in planned savings by 2029, while Commerzbank expects about 557 million in yearly AI value from 2030.

Between 90% and 100% of large U.S. enterprises report some return on their AI spending, according to PYMNTS Intelligence.

For years, banks have sold investors on artificial intelligence (AI) with usage counts and hours saved. Few have said how much money it makes; at least, not on an earnings call.

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That is starting to change. Bank of America has 130 to 140 AI projects running “at a cost of $400 million, generating a benefit of $800 million,” CEO Brian Moynihan said at a Barclays conference on Sept. 14, Fortune reported. He did not say what period the figures cover.

Bank of America will also double its AI expense budget next year, Moynihan said. The bank spends $4 billion a year on new technology initiatives, including AI, out of a $13.5 billion total technology budget, PYMNTS reported.

The returns show up most clearly in customer service. 6 million active users in the second quarter, PYMNTS reported . Without it, the bank would need 11,000 more people to answer calls, Chief Technology and Information Officer Hari Gopalkrishnan told Fortune.


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