Bank of America expands AI and machine learning patents 94% over two years

Victor J. Blue/Bloomberg

Bank of America nearly doubled the number of patents related to artificial intelligence and machine learning in two and a half years as financial institutions race to embrace the evolving technology.

The lender had nearly 1,100 AI and machine learning patents and pending applications within its portfolio at midyear, a 94% increase since early 2022, according to a statement Wednesday. More than half of the total have been granted already, BofA said.

The release of ChatGPT prompted many firms to boost hiring for AI-related positions and test more uses for generative AI, which can summarize documents, write emails and churn out responses to users' questions. The world's biggest banks have been experimenting, spurred by the promise that the technology will boost staffer productivity and cut costs.

Financial institutions have been developing new technology to set themselves apart, using machines to speed up everything from coding to training employees. BofA's AI-based virtual financial assistant, Erica, was rolled out in 2018 within the consumer-banking business and expanded to the Merrill wealth division and the company's CashPro application for commercial clients.

The Charlotte, North Carolina-based bank said it invests roughly $4 billion a year on new technology. Inventors at the lender have built a portfolio of about 7,000 patents and pending applications, according to the statement. Outside of AI and machine learning, BofA's other new patents involve information security, online and mobile banking, payments, data analytics and virtual reality.