Connect with us

Business

Bank of America prioritizes bigger AI initiatives, as annual spending on new tech increased by 44% over the past decade

Published

on


Bank of America’s annual spending on new, strategic technology initiatives, which includes investments in artificial intelligence, has increased by 44% over the past decade to reach $4 billion in 2025. The executive that’s steering those investments is Hari Gopalkrishnan, a 14-year veteran who was promoted to serve as the chief technology and information officer in late July.

Today at Bank of America’s investor day event, Gopalkrishnan will outline the vision for these strategic tech bets and discuss how they tie into the broader $118 billion in tech investments that the company has made over the past decade. It is the first time leadership has held this event in 15 years and Gopalkrishnan, CEO Brian Moynihan, and other C-suite leaders will face investors as Bank of America’s stock has lagged the five other large U.S. banks for the past five years.

“We have steadily increased our spend in technology, now up to $13 billion a year, of which $4 billion goes into strategic growth,” Gopalkrishnan tells Fortune ahead of his one-hour investor day panel discussion with two other Bank of America technologists. “We leverage across the enterprise, so every dollar you spend gets the maximum bang for the buck, as opposed to sort of being siloed by line of business.”

That means that when Gopalkrishnan deploys new AI tools and functionality, he will prioritize applications that can scale across all eight lines of business, which includes global capital markets, consumer lending, and retail banking. 

One example of this in action is Erica, an AI virtual assistant that’s surpassed three billion client interactions since the tool launched in 2018. It now averages more than 58 million interactions per month, facilitating chatbot conversations with clients, proactively altering them on changes to their past spending patterns or flagging when they may have been double-charged by a merchant, and answering banking questions. The tool is currently available on Bank of America’s mobile app, but will expand next year to the desktop.

In 2020, Bank of America launched Erica for Employees, an internal version of the tool that more than 90% of the company’s global workforce of 213,000 now uses regularly. Erica has helped reduce the number of calls into the company’s IT service desk by 50%. 

The banking sector has embraced generative AI capabilities at a faster pace than most sectors, with investments focused on AI-enabled chatbots, virtual assistants that can summarize financial documents, fraud monitoring, and assisting employees as they navigate complex international regulatory changes. Generative, predictive, and other forms of AI collectively are projected to generate as much as $340 billion annually in value creation for the global banking sector, consulting giant McKinsey has estimated. 

Financial giants, including Goldman Sachs and Citigroup, have also been steadily rolling out new generative AI tools to more employees throughout 2025.

At Bank of America, Gopalkrishnan says he’s less incentivized to focus his investments on AI tools that can save a couple minutes on simplistic workplace tasks. “When you look at the end-to-end client journey, they involve like 40-plus processes and thousands of employees,” says Gopalkrishnan. “You start to pick apart that process and reimagine it. That’s when you get ROI.”

Bank of America has explored more than 45 different “proof of concept” use cases for generative AI , with 15 of them commercially live today. Some of the priority use cases that Gopalkrishnan is deploying include tools that can summarize or offer search functionality for capital markets and investment banking employees, making it easier to pull real-time market commentary. An in-house built “AskGPS” tool, which was trained on over 3,200 internal documents and presentations, allows employees to ask complex questions on behalf of clients and receive responses within seconds.

Bank of America has also invested $1.5 billion into the company’s data capabilities over the past five years, which Gopalkrishnan says was critical to create a foundation that allowed for more AI adoption.

Within the technology department, Gopalkrishnan has deployed AI coding assistants that are used by 18,000 developers. There has already been a 20% productivity lift to select parts of the development life cycle that Bank of America has focused its efforts on.

Gopalkrishnan says he’s mostly leaning on one unnamed vendor to support AI-enabled code assistance, but is continuing to explore other tools on a smaller scale. His intent is to standardize the application of these AI coding tools over time to as few vendors as possible.

More than 130,000 Bank of America employees are currently authorized to use the enterprise productivity tools and by the end of the year, everyone will have access to them. Bank of America has sought to motivate its workforce by offering AI learning programs that begin by teaching the basics of AI, but also more advanced prompt engineering training.

“It’s really a combination of training, education, giving them exposure to the tools, and then ongoing commitment to reskill, as the work changes,” says Gopalkrishnan.

John Kell

Send thoughts or suggestions to CIO Intelligence here.

NEWS PACKETS

Tech earnings highlight cracks in AI’s valuation halo. Meta, Alphabet, Microsoft, and Amazon have all spent billions to support their AI initiatives—and all four told investors last week that they will increase spending even more in 2026. Investors have consistently supported the AI boom over the past few years, though that enthusiasm showed some notable cracks in the latest earnings season, as Microsoft and Meta Platforms both saw their stocks fall amid concerns for the lofty levels of spending needed to support their AI ambitions. What’s vexing investors is: AI is generating billions of dollars in revenue and bottom-line efficiencies, but exactly how much, at what pace, and at what price? That investment thesis still needs time to marinate as these tech giants have added debt to support their AI spending.

OpenAI strikes a big compute deal with Amazon; projects massive revenue growth. On Monday, OpenAI inked a deal to buy $38 billion worth of compute from Amazon and will immediately start to access Nvidia’s graphics processing units. The partnership is notable as it is one of OpenAI’s first big moves away from Microsoft, who the AI startup had an exclusive cloud agreement with up until this year. Separately, OpenAI CEO Sam Altman indicated more bullish expectations for revenue growth, sharing that annual revenue is “well more” than reports of $13 billion a year. When asked by the Bg2 Pod about revenue estimates exceeding $100 billion a year by 2028 or 2029, Altman responded: “How about ‘27?”

Nvidia makes history as the first-ever company worth $5 trillion. Last week, AI chipmaker Nvidia officially became the world’s first company to achieve a market capitalization north of $5 trillion, pulling ahead of tech rivals like Microsoft and Apple, who are each worth close to $4 trillion. The latest stock market gains came after Nvidia’s GTC developer conference, where CEO Jensen Huang disclosed that the company had secured more than $500 billion in orders for its AI chips through the end of next year. Major new deals that have been unveiled the past several days have included partnerships with Eli Lilly, Uber Technologies, and Johnson & Johnson. Bloomberg reports that Nvidia is now larger than six of the 11 sectors in the S&P 500 index and the entire value of equity markets of most countries.

Hiring spree: AI companies are seeking more “forward-deployed engineers.” This year, job advertisements have been soaring for a new specialist software developer who can write code, but also is adept at talking to customers. By hiring more forward-deployed engineers, AI hyperscalers like Anthropic, OpenAI, and Cohere would aim to make their AI models more specialized and useful for companies, thus generating bigger contracts and more revenue. The Financial Times reports that job advertisements for these roles have increased more than 800% between January and September of 2025, citing data from the jobs platform Indeed.

ADOPTION CURVE

Firms that prioritize AI governance are also generating stronger returns from their investments. A recent EY survey of 975 C-suite leaders across 21 countries found that while nearly every company had already suffered financial losses from AI-related incidents—with average damages “conservatively” exceeding $4.4 million—the enterprises that had stronger governance measures like real-time monitoring and oversight committees were seeing far fewer damages. And notably, those organizations are also seeing stronger returns from their AI investments: 34% more likely to see improvements in revenue growth and 65% more likely to produce cost savings.

“When I look at that data, what it tells me is that those companies are taking AI more seriously,” says Joe Depa, EY’s global chief innovation officer. “That means they’re likely training and talking about how to leverage AI, both ethically, but also from a productivity standpoint.”

The survey also found that members of the C-suite may still be struggling to keep up with the rapid pace of change as AI technologies advance. On average, when asked to identify the appropriate controls against five AI-related risks, including hallucinations and bias, only 12% of the C-suite respondents answered correctly. CTOs and CIOs did the best (26% and 24%, respectively), while chief operating officers (6%) and chief marketing officers (3%) were at the bottom of the list.

Courtesy of EY

JOBS RADAR

Hiring:

Boundless Network is seeking a CTO. Posted salary range: $336K-$402K/year.

Minnetronix Medical is seeking a VP of IT, based in St. Paul Park, Minnesota. Posted salary range: $230K-$300K/year.

The University of Massachusetts Boston is seeking a CIO, based in the greater Boston area. Posted salary range: $225K-$250K/year.

Bush and Bush Law Group is seeking a CTO, based in Dallas. Posted salary range: $100K-$150K/year.

Hired:

Valvoline announced the appointment of Hitesh Patel as chief technology and cybersecurity officer, effective immediately. Prior to joining the retail automotive services company, Patel served as SVP and CIO of bedding manufacturer Sleep Number. He also held technology leadership roles for retailers Advance Auto Parts and Best Buy.

Ronald McDonald House appointed Jarrod Bell as CIO, joining the family focused nonprofit to advance a digital transformation and enhance cybersecurity. Bell previously served as a managing consultant at Yates and as CTO at the nonprofit Big Brothers Big Sisters of America. He also previously served as a CIO of the San Francisco Opera.

Cabinetworks Group has promoted Erik Wille to serve as the cabinet manufacturer’s CTO, after assuming the role on an interim basis earlier this year. Wille initially joined Cabinetworks as SVP and CISO in 2023 and led various initiatives, including rebuilding the company’s information security management system and launching a new security awareness program. He previously held leadership roles at American Axle & Manufacturing and Penske Automotive Group.

Teradata has promoted Josh Fecteau to serve as the software company’s chief data and AI officer. Fecteau first joined Teradata in 2019 as a senior director of strategy and solutions architecture. He also held leadership roles at data storage company EMC, which Dell acquired in 2016, and has advised CIOs as a consultant.

Transflo named Jay Tomasello as CTO, joining the transportation-focused software provider after most recently serving as CIO at ground transportation services provider Forward Air. Prior to that, he spent more than nine years at shipping giant FedEx, where Tomasello served as CIO and VP of IT at FedEx Supply Chain.

Binti announced that former co-founder, Gabe Kopley, will rejoin the software provider as CTO. Kopley joined the company in 2015 and became a co-founder of Binti with CEO Felicia Curcuru and was also part of the startup’s launch in 2017. In his time away from Binti, Kopley served as director of engineering at Salesforce.

Blue Gold appointed Nathan Dionne as CTO to lead the company’s goal of launching a blockchain-based, gold-backed token. Previously, Dionne served as an early team member at gift cards provider CashStar, as CTO at digital media company Barstool Sports, and as founder of online sports betting platform PlayGreen.



Source link

Continue Reading

Business

‘This isn’t what Walt and Roy would have wanted’: Disney fans with disabilities sue over new ride restrictions

Published

on



Changes that Disney made to a popular program that lets qualifying disabled people skip long lines at its California and Florida theme parks are too restrictive, disabled fans contend in a federal lawsuit and shareholder proposal that seek to expand eligibility.

The battle over who can skip long lines on popular rides because of their disabilities marks the latest struggle by Disney to accommodate disabled visitors while cracking down on past abuses. But some Disney fans say the company has gone too far and has no right to determine who is disabled.

“This isn’t right. This isn’t what Walt and Roy would have wanted,” said Shannon Bonadurer, referring to the Disney brothers who founded the entertainment empire. Despite being unable to wait for long periods of time in the heat because she uses an ileostomy bag, Bonadurer was denied a pass for the disability program.

In a statement, Disney said it was committed to providing a great experience to all visitors, particularly those with disabilities who may require special accommodations.

Here’s a look at changes to Disney parks’ policies for disabled visitors.

What is the disability program?

The Disability Access Service, or DAS, program allows pass-holders and their immediate family members to make an online reservation for a ride while in the park and then get into an expedited line that typically takes about 10 minutes when it’s their time to go on the ride. DAS guests never have to wait in normal standby lines, which on the most popular attractions can be two hours or more.

The DAS program started in 2013 in response to past abuses by disabled “tour guides” who charged money, sometimes hundreds of dollars, to accompany able-bodied guests, enabling such guests to go to the front of lines. Disney says the DAS program needed changing because it had grown fourfold. Before last year’s changes, the percentage of guests having DAS passes jumped from around 5% to 20% over the past dozen years “and showed no signs of slowing,” the company said in court papers.

Disney parks make other accommodations for disabled visitors, including maps in Braille, a device that helps transfer visitors from wheelchairs to ride seats, quiet break locations and American Sign Language interpreters for some live shows. The parks permit some service animals on rides and allow some disabled guests to leave a line and rejoin their party before boarding a ride.

Who qualifies now?

Disney narrowed the scope from people with a wider range of disabilities to mostly guests who “due to a developmental disability such as autism or similar” have difficulties waiting in a long line. Under the changes, guests seeking a DAS pass must be interviewed via video chat by a Disney worker and a contracted medical professional who determine if the person is eligible. Visitors found to have lied can be barred from the parks.

Some people with disabilities who have been denied say the new policy is too restrictive. Not only was Bonadurer denied a pass, but so was her 25-year-old son, who is blind and has cerebral palsy and autism.

“They are making a determination about whether you’re disabled enough,” said Bonadurer, a professional travel adviser from Michigan. “I would love to wait in line with everyone else, and so would my son, since that would mean he has a normal life. But we don’t, and unfortunately for us, we need adaptations to how we wait.”

Disney says the Americans with Disabilities Act doesn’t require equal treatment of people with varying disabilities. The company accommodates those visitors who don’t meet the new DAS criteria with alternatives, Disney said in court filings responding to a federal lawsuit in California.

“For example, in a crowded movie theater, a person using a wheelchair may be entitled to priority seating even if they arrive shortly before the movie starts, while a deaf person may only be entitled to a seat with closed captioning,” the company said.

At Disney’s main theme park rival, Universal, disabled visitors can get shorter lines if they have a card issued by an international board that certifies venues for their accessibility.

What’s next?

A shareholder proposal submitted on behalf of DAS Defenders, an advocacy group of Disney fans opposed to the DAS changes, calls on the company next year to commission an independent review of its disability policies and publicly release the findings. The shareholder proposal claims the change to the DAS program has contributed to lower park attendance.

Disney’s attorneys told the Securities and Exchange Commission in a November letter that it intends to block the proposal ahead of the company’s 2026 shareholder meeting, saying it was false and misleading about the reasons for an attendance decline, which the company attributed to hurricanes. The company also argued the shareholder proposal amounts to micromanaging day-to-day operations.



Source link

Continue Reading

Business

Kushner suddenly enters the Paramount–Netflix fight with Saudi billions and a fresh mega-deal

Published

on



Jared Kushner has quietly reemerged as a player in one of the biggest takeover fights in modern Hollywood. Paramount’s audacious, all-cash $108 billion hostile bid for Warner Bros. Discovery, announced Monday, names Kushner’s fully owned private equity firm, Affinity Partners, as one of four outside financing partners backing the offer, alongside the sovereign wealth funds of Saudi Arabia, Abu Dhabi, and Qatar.

Axios first reported the involvement of Saudi and Gulf investment.

The detail is buried in Paramount’s tender offer, with Paramount listing “the Public Investment Fund (Kingdom of Saudi Arabia), L’imad Holding Company PJSC (Abu Dhabi), Qatar Investment Authority (Qatar) and Affinity Partners (Jared Kushner)” as investors who would, under a successful deal scenario, hold non-voting equity and forgo governance rights, including board seats. 

The filing also states that because these investors are structured without such rights, “the Transaction will not be within CFIUS’s jurisdiction,” referring to the Committee on Foreign Investment in the United States. Reports have suggested that WBD’s board opted for Netflix’s deal as it lacked any foreign financing components and therefore faced no issues with CFIUS, a notably opaque and powerful antitrust tool that the government can employ to block controversial mergers.

Both Paramount and Netflix are likely to increase their offers. David Ellison said on CNBC that he told the CEO of Warner Bro’s, David Zaslav, that $30 per share wasn’t the company’s best and final offer.

Kushner’s Middle Eastern ties

Kushner’s inclusion reflects a broader fact pattern: since leaving government, his firm has raised several billion dollars from Gulf investors and has participated in large private transactions involving capital from the same region. In September, his firm joined Silver Lake and Saudi Arabia’s Public Investment Fund in the $55 billion agreement to take Electronic Arts private, the largest private-equity buyout in history. 

WSJ reporting shows Kushner helped connect Silver Lake with PIF leadership earlier in the year as discussions around an EA buyout accelerated. Affinity Partners ultimately took a roughly 5% stake in the transaction, alongside Silver Lake and PIF, which financed the majority of the equity. The EA deal marked the first time Kushner’s fund appeared in a major global technology buyout of that scale, and it involved the same Gulf investors who now appear in Paramount’s financing package.

Kushner has also remained active in Middle East political diplomacy, not just financial. He played a meaningful role in the administration’s recent Israel-Gaza peace effort, brought in because of his involvement in negotiating the Abraham Accords during Trump’s first term, which established diplomatic ties between Israel and several Gulf states including Saudi Arabia. The Gulf state is increasingly opening up, especially with regard to western businesses, as highlighted by Barclays’ confirmation in late October at the Fortune Global Forum in Riyadh that it was relocating its regional headquarters there. Separately at the Fortune Global Forum, Saudi Investment Minister Khalid A. Al-Falih described the breakthroughs occurring under Vision 2030, the kingdom’s economic transformation plan that is roughly nine years old. He said he saw 2025 as a “pivotal moment,” when “the very foundations of global business are being shaken, in a way, and being rewritten before our own eyes.”

The deal took on new political dimensions over the weekend, with President Donald Trump publicly weighing in on Netflix’s agreement to acquire WBD’s studio and streaming assets. Speaking to reporters on Sunday, Trump said the Netflix–WBD deal “could be a problem” because of the combined businesses’ market share, and noted that he expects to be involved in the review process. He also confirmed meeting with Netflix co-CEO Ted Sarandos in the Oval Office shortly before the deal was announced by Netflix, saying Sarandos had made “no guarantees” about the transaction. 

Trump did not confirm the scoop by Bloomberg’s Lucas Shaw, who wrote in his influential entertainment newsletter that Sarandos has been wooing Trump since late November, when he visited Mar-A-Lago. Trump did indicate, however, that he has a good relationship with the Netflix leader, calling Sarandos a “fantastic man” who had played a major role in building Netflix into such a great company. Netflix executives expressed great confidence in regulatory approval on Friday’s call with analysts about their deal, worth $72 billion in equity and about $83 billion including the assumption of debt.

The political plot thickens

The political overtones of the wrangling here are at least worth noting. Paramount was recently acquired by David Ellison, son of longtime Republican donor Larry Ellison, who Trump named as one of several U.S. billionaires to take control of the U.S. assets of TikTok. (Bloomberg’s Shaw reported that Sarandos was interested in the Paramount studio before Ellison acquired it.) Meanwhile, Sarandos is married to Nicole Avant, who was ambassador to the Bahamas during the Obama administration. Netflix co-founder Reed Hastings is a prominent and longtime Democratic donor, although Hastings is now non-executive chairman at Netflix and has been focused on his Powder Mountain resort in Utah, acquired shortly after Fortune’s profile of the resort in 2023.

Paramount explicitly argued that its own proposal carries fewer regulatory risks than Netflix’s. In its filing, the company contends that the Netflix agreement faces significant antitrust hurdles, including a long potential review timeline. Paramount also emphasizes that its outside financing—because it is non-voting—does not trigger CFIUS review, eliminating one additional hurdle of national-security scrutiny.

Trump’s posture toward Paramount, however, has been mixed. Roughly 20 minutes after Paramount launched its hostile offer, Trump explicitly criticized Paramount management over a 60 Minutes segment featuring Rep. Marjorie Taylor Greene, writing on Truth Social that it was “NO BETTER THAN THE OLD OWNERSHIP.” Trump added that “since they [Paramount] bought it, 60 Minutes has actually gotten WORSE!” CBS News and 60 Minutes, as is customary with news organizations, maintain that they have editorial independence from their ownership. Paramount settled a lawsuit brought by Trump over a certain 60 Minutes episode during the 2024 election, paying $16 million in July 2025, shortly before Ellison’s takeover won regulator approval.

Separately on Monday, Larry Ellisontold CNBC that he has had “great conversations” with Trump about the WBD bid, without elaborating. 

Nidhi Hegde, executive director of the American Economic Liberties Project, wrote on X in response to Ellison’s remarks that “the correct option is neither Paramount nor Netflix buy Warner.”

“The president inserting himself in the deal is obviously problematic, regardless of the parties involved,” said Hegde. 

[Disclosure: one of the author’s worked at Netflix from June 2024 through July 2025.]



Source link

Continue Reading

Business

Baby boomers have ‘gobbled up’ the wealth share, leaving Gen Z to wait for Great Wealth Transfer

Published

on



Older Americans may be trading in hustling for retirement, but that hasn’t stopped them from getting richer.

Baby boomers now hold a record high of the United States’ wealth, Apollo chief economist Torsten Slok noted in a Sunday blog post, citing Federal Reserve data. Compared to 1989, when those over 70 years old held 19% of the wealth in the household sector, older Americans now own 31% of the wealth.

That chunk of change is an outsized share compared to other generations. Baby boomers, who make up about 20% of the U.S. population, hold more than $85 trillion in assets, according to Fed data. By comparison, millennials, who make up about the same percentage of Americans, hold just about $18 trillion, roughly one-fifth that of baby boomers. 

Older Americans’ financial success is in especially stark comparison to that of Gen Z, a generation with deep skepticism about the economic future, who feel shut out from entry-level jobs amid the rise of AI, with many sinking into credit card debt as they struggle to repay student loans. As of last year, the young generation had only $6 trillion in wealth, despite making up the same percentage of the population as their baby boomer and millennial counterparts.

“The baby [boomer] generation has really gobbled up a huge share of household wealth, so it’s left a lot less for other age cohorts,” Edward Wolff, professor of economics at New York University, told Fortune.

Baby boomers’ good timing

America’s septuagenarians were raised by parents who came of age during the Great Depression and learned the hard way the lessons of frugality and the importance of saving money. But the baby boomer generation owes a great deal of their financial security to the stars aligning during their formative years.

In the 1970s when many baby boomers entered the housing market, inflation surged, making buying a home an appealing investment. As home values soared in the following decades, so, too, did the generation’s equity. The older generation has also been boosted by stock ownership, with baby boomers holding 54% of stocks worth more than $25 trillion, according to an early 2025 analysis of Fed data by The Motley Fool. Millennials owned about 8% of stocks worth $3.9 trillion.

But Gen Z, who may be following baby boomers’ lead in stock market investments, have not shared the same good fortune in the housing market. Housing supply has been low since the 2008 recession, exacerbated by sky-high mortgage rates, which disincentivized home sales and contributed to exorbitant home prices.

As a result, 2025 saw a 21% drop in the share of first-time homebuyers, and the age of those buyers reached a record high of 40 years, according to November data from the National Association of Realtors, leaving Gen Z to wait a little longer for the keys to their first homes. A March Redfin report found today, just 33% of 27-year-olds own their homes compared to 40% of baby boomers who owned their homes when they were the same age.

“They weren’t able to enjoy the big appreciation of house prices to the same extent as baby boomers,” Wolff said.

Gen Z’s silver lining

Gen Z may be facing generation-defining economic challenges, but there’s hope for them yet. Pew Research Center data from 2024 indicates Gen Z may actually be in better financial shape than young people in past generations: In 2023, Zoomers made a median pay of about $20,000, adjusted for inflation. In 1993, 18-to-24-year-olds made about $15,000. Income growth finally outpacing home price growth may also be a silver lining for prospective home buyers.

But part of the equation of Gen Z’s relatively paltry share of wealth is simply because they haven’t had as much time to acquire it, Michael Walden, professor emeritus of economics at North Carolina State University, told Fortune.

“It makes logical sense that older people will accumulate greater percentages of wealth at any point in time because they’ve had more years to invest and reap the returns of their investments,” Walden said.

Beyond just more time, Gen Z will indirectly benefit from the investments made by their parents and grandparents as they await the Great Wealth Transfer that promises to distribute, by some estimations, $124 trillion in inheritance to the younger generations. Just this year, 91 heirs inherited a record $297.8 billion, according to the UBS Billionaire Ambitions Report, a 36% increase from last year.

Walden said the Great Wealth Transfer is coming, but Gen Z and millennials shouldn’t rely on the death of a loved one to begin their wealth acquisition journey in earnest.

“It’s hard to target when that’s going to come, so I would argue to any young person that I would be talking to, have a plan, be consistent with the plan,” he said.



Source link

Continue Reading

Trending

Copyright © Miami Select.