Bank of America plans to double AI budget next year
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As companies zero in on returns from AI investments, Bank of America Co-President Jim DeMare said Wednesday there’s a deeper concern beneath mounting questions on the pace of capital spending by large companies.
“The question was really getting at, are we going to see returns quickly enough?” DeMare said during an appearance at a BofA Securities conference.
AI spending in financial services has soared, giving way to rising pressure around returns on investment. Consulting firm Accenture found only 20% of bank leaders are seeing widespread, sustained value from AI initiatives, pointing to scale challenges.
Thus far, the most measurable AI returns are found within technology units, such as with software development and coding, BofA’s DeMare said.
Across most industries, AI is boosting coding productivity about 15% to 20%, he said, and that’s the gain BofA...
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