Bank of America has revealed a significant 94% increase in Artificial Intelligence (AI) and Machine Learning (ML) patents and applications since 2022.
The bank claims to lead the financial services industry in granted patents, with close to 7,000 total patents and pending applications. Of these, nearly 1,100 are focused on AI and ML, with over half already approved.
AI and ML technologies have rapidly transformed industries worldwide, especially in payments. Bank of America, already a major user of these technologies, is planning further expansion and has highlighted some areas where they are currently applied.
Aditya Bhasin, Chief Technology and Information Officer at Bank of America, commented: “We innovate to meet and anticipate our clients’ needs. As our pace of innovation accelerates, we’re continually listening to clients and building solutions to improve and simplify their experiences.
“Such has been the case with our approach to AI, machine learning, and related technology for many years – the use of which centres on the benefits to our clients and employees.”
One of the standout applications of AI at Bank of America is Erica, its virtual financial assistant. Since its launch, Erica has served over 45 million users, handling more than 2.4 billion interactions.
AI-powered customer assistants like Erica were among the first visible AI tools in payments, enabling staff to focus on more complex tasks. Bank of America emphasises that its AI approach includes human oversight, transparency and accountability for all results.
This year, Bank of America received new patents in several tech areas beyond AI and ML, including information security, online and mobile banking, payments, data analytics and augmented and virtual reality.
The bank invests over $12bn annually in technology, with around $4bn earmarked for new initiatives in 2024, aiming to improve client experiences and boost operational efficiency.
North American banks have led the way in adopting AI, staying ahead of their European counterparts.
However, European banks are now working to boost their role in AI development and adoption, as shown by recent investment figures. Data from AI benchmarking platform Evident reveals that several of Europe’s largest banks are ramping up their investments in AI startups.
