AI gains for big banks pose a competition headache

BANK of America (BOA) first launched its artificial-intelligence (AI) driven chatbot, Erica, nearly a decade ago in 2016.

Several iterations and a wealth of patents later, the platform handles about two million customer interactions each day, the equivalent of what 11,000 employees could do.

If that sounds impressive, the flip side is the cost: The company has spent nearly US$120 billion on technology over roughly the same period, and last year’s US$12 billion tech budget included US$4 billion for development, including improving Erica and building new apps, on top of the US$8 billion required to maintain existing systems.