AI’s Economic Impact Accelerates, Says Bank of America’s Moynihan
Brian Moynihan, the CEO of Bank of America, recently highlighted the growing role of artificial intelligence (AI) in shaping the US economy. In an interview with Bloomberg Television, he stated that AI investments are steadily increasing and are expected to significantly contribute to economic growth in the upcoming years.
AI’s Accelerating Economic Impact
Moynihan emphasized that while the economic upturn cannot be solely attributed to AI, it plays a crucial marginal role. He noted, “AI is kicking in more and more,” indicating that its influence is becoming increasingly pronounced.
Economic Outlook for 2024
The bank predicts a robust economy for the US, forecasting growth of 2.4% next year, compared to an estimated 2% for 2025. Moynihan acknowledged that while the labor market is softening, it represents a normalization rather than a decline in job availability.
Investments in AI Technology
Recent months have seen substantial funding flowing into AI companies like OpenAI, attracting investor interest in this burgeoning sector. However, industry leaders, including Jeff Bezos of Amazon, caution that excessive spending on AI could resemble an “industrial bubble,” leading to potential investment losses despite its long-term societal benefits.
Managing Economic Risks
Bank of America remains cautious about the potential risks posed by an overheated AI sector. Moynihan stated that the bank sees limited risk to consumers and job markets since the AI industry is concentrated among a small number of companies. He reassured that the bank meticulously evaluates leverage and contracts associated with AI projects.
Incorporating AI at Bank of America
Bank of America is not just a spectator in the AI landscape; it actively employs AI technologies. Moynihan pointed out that their AI-powered agent bot, Erica, has evolved since its launch in 2018, now being able to respond to 700 queries, an increase from the initial 200.
- Forecasted US Economic Growth: 2.4% in 2024.
- AI Queries Handled by Erica: Increased from 200 to 700 since 2018.
Moynihan concluded with a vision of integrating more “augmented intelligence,” where AI complements human efforts, enhancing overall effectiveness across the bank’s operations.
