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Bank of America hired 1,000 contractors to patch flaws
CNBC • • business
Key Points:
- Bank of America hired around 1,000 external contractors in addition to its 3,000 internal staff to rapidly patch software vulnerabilities exposed by advanced AI models like Anthropic's Mythos, according to CEO Brian Moynihan.
- The bank spent over a couple hundred million dollars in Q3 on software remediation and regulatory compliance related to anti-money laundering, highlighting the significant costs incurred to defend against AI-exploited software flaws.
- Moynihan emphasized that the increased spending is temporary, expecting remediation costs to decline once patches are implemented, while also noting the need to stay ahead of risks posed by AI.
- On the positive side, Bank of America runs about 130 internal AI projects that are projected to increase cost savings from $300 million in 2023 to $700 million by 2027.
- The bank reduced its workforce by approximately 3,400 employees over the past year, cutting about 5% of managers, though it is unclear how much of this is directly related to AI-driven efficiencies.
