Bank of America Balances AI Efficiency With $25 Minimum Wage Commitment

Bank of America CEO Brian Moynihan has acknowledged that artificial intelligence (AI) is reshaping the company’s workforce, with some departments shrinking as the firm integrates advanced technologies into its operations. Despite these shifts, the bank has simultaneously raised its U.S. minimum hourly wage to $25, a move that places the annualized salary for full-time employees above $50,000. This increase fulfills a commitment made in 2021 and positions Bank of America as a leader in corporate wage-setting within the United States.

The wage adjustment is part of the bank’s broader strategy to align with its long-term vision of supporting employee growth and strengthening communities. Since 2017, Bank of America’s minimum wage has increased by nearly 67%, reflecting its ongoing focus on fair compensation. The new wage structure is expected to impact thousands of employees across the country, including both full-time and part-time workers. Additionally, the bank offers a suite of benefits such as tuition assistance, professional development programs, and stock awards, which have seen nearly $5.8 billion distributed since 2017.

Parallel to these workforce developments, Bank of America is aggressively expanding its use of AI. The bank has allocated $4 billion toward AI and new technology initiatives in 2025, nearly a third of its $13 billion annual technology budget. AI tools are already driving efficiency gains in areas such as software development, customer service, and employee training. For instance, software developers using a generative AI-based coding assistant have seen productivity gains of over 20%, while customer service representatives are leveraging AI to deliver more personalized client interactions. In 2024, there were over 23 million interactions with AI-powered tools such as askMERRILL and askPRIVATE BANK.

The bank’s internal AI assistant, “Erica for Employees,” has been adopted by over 90% of its workforce and has reduced IT support calls by more than 50%. Originally launched during the pandemic to assist with technical support, the tool has since expanded its scope to include benefits information and payroll-related queries. Looking ahead, the bank plans to enhance the assistant’s capabilities using generative AI to provide broader support across various employee concerns.

In addition to operational efficiency, AI is being leveraged to improve employee training and development. Bank of America’s Academy program uses AI-driven conversation simulators to help employees practice client interactions, with over 1 million simulations conducted in 2024 alone. These initiatives reflect the bank’s strategic focus on re-skilling and redeploying employees in response to AI-driven changes in the workforce.

The integration of AI is also evident in the bank’s growing patent portfolio, which now includes nearly 7,400 granted and pending patents. Of these, over 1,200 are related to AI and machine learning. This demonstrates Bank of America’s commitment to innovation and its long-term investment in developing cutting-edge financial services technologies.

While AI adoption is transforming workflows and reducing redundancies, the bank emphasizes the importance of human oversight and ethical deployment. According to Moynihan, the challenge lies in retraining and redeploying employees in a manner that aligns with the evolving needs of the organization. The bank is also hiring 10,000 individuals with military backgrounds and 8,000 community college graduates over the next five years, aiming to create long-term career pathways and support economic resilience in underserved communities.