Bank of America Harnesses AI to Enhance Customer Experiences and Control Costs
Bank of America, the second-largest bank in the United States, is embracing artificial intelligence (AI) to revolutionize customer experiences and optimize operational efficiency. In a recent interview on FOX Business Network’s “Mornings With Maria,” Bank of America CEO Brian Moynihan highlighted the bank’s innovative use of AI, including its virtual financial assistant, Erica, which has logged an impressive 10 million hours of customer conversations since its launch in June 2018.
Moynihan explained that Erica is a versatile tool that can be voice-activated or used through typing. Leveraging predictive language, Erica responds to customer queries based on the bank’s data and information. “It’s a very sophisticated system – it is not what ChatGPT gives us with all the internet information and all that stuff – but it’s a very sophisticated system,” Moynihan said.
Bank of America began developing Erica eight years ago, and it has since witnessed remarkable growth. With a staggering billion and a half interactions, the virtual assistant now handles around 150 to 160 million interactions per quarter. These interactions are especially significant as they have replaced what would have been phone calls or in-branch visits, making banking more convenient and accessible for customers. Moynihan revealed that approximately 18 to 20 million people currently utilize Erica, showcasing its popularity and effectiveness.
Despite Erica’s current success, Moynihan acknowledged that AI tools, including Erica, are still in their early stages. He emphasized the importance of strict control and decision-making capabilities to ensure responsible usage. “If you listen to the experts, it’s not quite there yet; it will get there over time,” Moynihan said. As the technology matures, the potential for further refinement and development remains promising.
The implementation of AI and other technological advancements has allowed Bank of America to maintain a lean workforce over the past 15 years, even as the financial services giant acquired several large institutions like Merrill Lynch. Moynihan pointed out that the bank now employs a similar number of people as it did in 2008. The strategic application of technology, not only AI but also various digital platforms, has facilitated this workforce optimization.
The impact of technological transformation is not limited to the bank’s internal operations; it also extends to the way customers conduct financial transactions. Moynihan highlighted that Bank of America now processes more transactions using the Zelle cash payment app than traditional check transactions. He further predicted that Zelle’s popularity would soon surpass ATM distributions as well.
As Bank of America continues to leverage AI and advanced technologies, it is evident that the financial giant is committed to enhancing customer experiences while simultaneously controlling expenses. As the capabilities of AI continue to evolve, the banking industry can anticipate even greater efficiency and convenience in the near future.
