Bank of America is preparing for a new phase in its technology journey under the leadership of Hari Gopalkrishnan, the recently appointed Chief Technology and Information Officer. Backed by a $13 billion tech budget for 2025—$4 billion of which is dedicated to AI and new tools—his focus is clear: deliver meaningful AI-driven solutions that help employees and customers alike.

Instead of adding flashy features, Gopalkrishnan emphasizes practical innovation. He explained that people don’t want generic alerts; they want personalized insights that are relevant to their financial lives. A small detail, such as identifying an unexpected gym charge, demonstrates the kind of real-world usefulness he expects AI to deliver.

Balancing Innovation with Costs

Developing advanced AI is no small investment. Gopalkrishnan pointed out that the hardware, cloud resources, and engineering talent required come with high costs. His approach is to build smartly without overengineering. He noted that avoiding unnecessary experimentation prevents wasted resources while still keeping the bank ahead in the AI race.

Alexandra Mousavizadeh, CEO of Evident, which monitors AI adoption across the finance sector, observed that banking has become one of the most competitive industries for advanced AI. Still, she highlighted Bank of America’s position as a leader, with over 1,400 AI patent filings—more than half already approved.

Instagram | @umdclarkschool | Chief Technology and Information Officer Gopalkrishnan shares how banks can build AI wisely while avoiding extra costs.

AI Success Stories Already in Play

Erica, the customer-facing AI chatbot, launched in 2018 and quickly became one of the bank’s most visible achievements. Since then, Erica has handled more than three billion interactions.

In 2020, the bank rolled out an employee version of Erica, and now over 90% of its 213,000 employees use it. As a result, experts like Mousavizadeh call this one of the most extensive AI implementations in the finance industry.

At the same time, the bank delivers impact through specialization. It introduced tools like “ask MERRILL” and “ask PRIVATE BANK” for wealth management teams. These AI assistants help advisors spot investment opportunities and strengthen client engagement.

In the end, they act as powerful tools that make personalized service stronger and more effective.

Leadership Transition and $4B AI Push

Gopalkrishnan took on his new role in July after working at Bank of America for more than a decade. He replaced Aditya Bhasin, who retired after 22 years. The two had partnered on major projects like Erica, which helps ensure the bank’s innovation strategy stays on track. Now, Gopalkrishnan leads a global tech team of 60,000 people. His focus is on scaling the bank’s technology footprint and driving growth.

The bank is also investing $4 billion in new AI tools. One solution creates draft documents for bankers before client meetings. What once required hours of manual research across portfolios, transactions, and third-party data now takes only minutes.

This shift shows how AI is changing more than just customer-facing apps. It is also transforming back-office work. By saving time and improving accuracy, these tools increase efficiency and sharpen the bank’s competitive edge.

Freepik | Bank of America utilises AI to reduce hours of work to minutes for employees.

Learning from What Doesn’t Work

Even with such progress, not every experiment delivers results. Gopalkrishnan noted that when the bank added voice AI to Erica, customers showed little interest in discussing personal finances out loud. Recognizing this, the bank scaled back on voice features and reallocated resources to areas with higher demand.

For him, avoiding hype-driven projects is just as important as investing in promising ones. As he explained, the focus must remain on delivering tools people actually want to use.

Where the Future is Headed

Bank of America’s strategy signals a steady rollout of new AI tools, with new features expected each quarter. Industry experts anticipate that the real financial returns from these technologies will start to show in 2026 and 2027.

By combining a massive budget with disciplined execution, the bank is setting a standard for the industry. Rather than chasing trends, it is creating practical solutions that enhance both customer experience and employee productivity.

Driving Real Value in Banking Technology

Bank of America’s $13 billion investment highlights how the financial sector is moving toward AI as a long-term growth driver. With Gopalkrishnan at the helm, the focus remains on solving specific problems, building practical tools, and scaling what works.

As these innovations expand, both clients and employees will benefit from more efficient systems and tailored experiences. By staying disciplined while pushing forward, the bank is positioning itself to define the next era of financial technology.