One of the largest banks in the United States, Bank of America (BofA) (NASDAQ: BAC), is advancing its digital push by investing in artificial intelligence (AI) and blockchain, its latest report reveals.
The Bank of America Digital Transformation Strategies Report 2024 delves into the bank’s innovation programs and digital transformation strategies, including investments and acquisitions in tech firms.
The report reveals that BofA has been integrating AI to digitally transform its front and back-office operations. One of the bank’s biggest successes has been Erica, its AI assistant. Erica debuted in 2018 as one of the first in its field; as AI has advanced, it has become more capable.
An October report revealed that over 37 million BoFa clients had interacted with Erica over 1.5 billion times since its launch.
This year, the bank pledged to expand Erica’s capabilities “to provide personalized banking, investing, credit, and retirement-planning advice.”
BofA has also been leveraging blockchain technology, the report states. It has been relying on a blockchain-powered platform offered by Paxos Trust Company, known as the Paxos Settlement Service, to cut down on the time it takes to settle a trade.
BofA started experimenting with the blockchain platform in 2021, joining other global giants like Nomura Holdings (NASDAQ: NRSCF) and Credit Suisse (NASDAQ: CSGKF). Stock settlement has been dominated by the Depository Trust & Clearing Corp. for over 50 years. However, the organization only settles trades logged before 11 a.m. Any trade after the cut-off time is settled the next day.
BofA, the second-largest American bank after JPMorgan (NASDAQ: JPM), has been one of the financial world’s most prominent investors in blockchain. CEO Brian Moynihan revealed
last year that the bank has hundreds of blockchain patents. However, like its Wall Street peers, it’s cautious with new technology and has been engaging in pilots and trials.
AI and blockchain will be among the two technologies in which the bank will invest its $3.8 billion innovation budget this year.
In order for artificial intelligence (AI) to work right within the law and thrive in the face of growing challenges, it needs to integrate an enterprise blockchain system that ensures data input quality and ownership—allowing it to keep data safe while also guaranteeing the immutability of data. Check out CoinGeek’s coverage on this emerging tech to learn more why Enterprise blockchain will be the backbone of AI.
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