Artificial Intelligence, Banking, Data, Member Exclusive

Before chasing AI, Bank of America wants banks to fix their data first

  • Bank of America has resisted the urge to use AI as a shortcut to efficiency, a temptation that has driven many companies into expensive and poorly conceived AI investments.
  • EricaAssist offers the clearest example of Bank of America's data-first AI strategy, with the bank recently enhancing the employee assistant by integrating Gen AI capabilities.
close

Email a Friend

Before chasing AI, Bank of America wants banks to fix their data first

A lot of the conversations around artificial intelligence tend to circle back to one question: which institution has built the smartest, most capable model?

Bank of America argues the model quality isn’t the point; an AI feature is only as reliable as the data behind it. That reliability determines whether AI can be trusted to support decisions or should be kept out of high-stakes ones entirely. 

Bank of America’s thinking on AI comes into focus through three perspectives: Matthew Davies, Head of Global Payments Solutions at Bank of America’s warning about fragmented data, EricaAssist’s role as an employee copilot grounded in years of client history, and CEO Brian Moynihan’s caution toward frontier models. All point to the same philosophy: AI should be treated as a supportive step in the process, not the one making high-stakes decisions. 

Capital misallocation is the real risk

Bank of America has built its AI strategy to avoid the trap of treating AI as a shortcut to efficiency, an approach that often results in costly, misguided AI investments. Davies notes that the pressure every company now feels to adopt AI fast or risk falling behind is itself the real danger. “The biggest risk and challenge is misinvestment rather than underinvestment,” he says. 

Bank of America has traced that misinvestment risk back to fragmented data scattered across ERP systems, treasury platforms, bank portals, and acquired businesses. Because these systems speak different languages, even the most advanced AI layered on top struggles to reconcile the underlying information. Davies emphasizes that without high-quality, standardized data, there’s no real foundation for automation, forecasting, or any AI solution built on top of it. Tearsheet’s recent reporting on Intuit Credit Karma echoes the same idea. Rather than building standalone AI assistants, the company built them on a shared view of a customer’s financial life, recognizing that better AI starts with better data and context.

For Bank of America, improving data quality delivers value long before any AI enters the picture. Standardized data alone reduces the manual reconciliation, duplicate entries, and reporting errors that consume hours of finance teams’ time every week. Davies outlined the bank’s order of operations: standardize the data first, automate repetitive tasks next, and only then pursue bigger AI initiatives.

EricaAssist: Inside Bank of America’s own data-first playbook

…


0 comments on “Before chasing AI, Bank of America wants banks to fix their data first”

Business of Fintech, Member Exclusive

Block has built the bridge between Square sellers and Cash App customers. Now it wants more people to cross it.

  • Block’s Neighborhoods connects Square sellers with Cash App users, helping local businesses drive discovery, direct orders, and repeat visits without monthly fees or marketplace commissions.
  • Early growth is promising, with $1 billion in annualized GPV as of June 2026, but the long-term test is whether Neighborhoods drives incremental spending and lasting customer relationships.
Sara Khairi | November 05, 2026
10-Q, Member Exclusive

Huntington wants to win small businesses before they become banking customers

  • Huntington is looking for its next small-business customers before they need a bank.
  • With 1866 Studio, it’s betting that helping entrepreneurs solve everyday business problems now could earn it a role in their financial decisions later.
Sara Khairi | November 02, 2026
Culture and Talent, Member Exclusive, Opinion

AI can eat jobs, but companies still have to build the workforce

  • AI can eliminate tasks and jobs, but companies still need to build the skills, talent pipelines, and workforce needed for what comes next.
  • From entry-level training to decades of institutional knowledge, the risk is that companies cut work faster than they build the people and capabilities to replace it.
Sara Khairi | October 30, 2026
10-Q, Member Exclusive

Fifth Third is putting its banking relationships to work to find new growth

  • Fifth Third is leaning on its existing banking relationships and infrastructure to make deposits stickier as AI makes it easier for customers to move money for better yields.
  • The bank is bringing more money management tools into its apps while using Newline to extend its payments and banking infrastructure to fintechs beyond its own channels.
Sara Khairi | October 26, 2026
Lending, Member Exclusive

LendingTree wants to own an earlier step in the loan shopping journey

  • LendingTree is moving upstream in the loan-shopping journey, using ChatGPT to reach borrowers while they’re still researching what they can afford and what type of loan they need.
  • The strategy tests whether AI can turn that early research into completed applications, while LendingTree applies AI across offer comparison, customer acquisition, and servicing.
Sara Khairi | October 22, 2026
More Articles