Bank of America Deploys Contractors to Address AI-Related Software Vulnerabilities
- Bank of America has hired 1,000 contractors to address software vulnerabilities exposed by AI models.
- CEO Brian Moynihan reports spending “a couple hundred million plus” on software remediation and compliance.
- The bank expects remediation costs to decrease over time despite a temporary share price drop.
Bank of America has enlisted a significant number of external contractors to help mitigate software vulnerabilities identified by advanced artificial intelligence models, including Anthropic’s Mythos, according to CEO Brian Moynihan in an interview with CNBC on Wednesday.
In a discussion following the bank’s third-quarter earnings release, Moynihan revealed that the company expedited efforts to enhance both internal and vendor code by deploying thousands of employees along with outside contractors earlier this year. “That risk is real risk, and that’s why when the frontier-type models came out… A lot of us sat down and said, ‘How do we figure out how to get through this quickly?” he explained.
The CEO indicated that the bank added 1,000 contractors to assist with patching software in the second quarter and that these individuals remain engaged in this work, supplementing the existing team of 3,000 personnel dedicated to the task.
Moynihan disclosed that the bank had committed “a couple hundred million plus” toward software remediation and regulatory measures concerning anti-money laundering compliance during the third quarter. His remarks mark some of the first by a major U.S. corporation detailing the manpower and financial resources allocated to secure systems against threats from Mythos, which was rolled out in April to select banks, tech firms, and government agencies.
These developments underscore the dual-edged nature of AI; while it can enhance productivity and help lower costs, tools like Mythos are also capable of revealing and exploiting longstanding software vulnerabilities that compel companies to invest heavily in defense strategies. “We’ve got to stay ahead of them, and we’ve got to be mindful that the people doing the software development are the people trying to sell us the services,” Moynihan added.
Despite a notable dip in the company’s share value, which fell as much as 8% on Wednesday, Moynihan sought to reassure stakeholders about the temporary nature of the increased expenditures. “Once you patch, you don’t have to patch as much… The pipeline moves through,” he noted, indicating expectations for a reduction in remediation costs over time.
Additionally, Bank of America is leveraging AI to optimize expenses, with approximately 130 internal AI projects anticipated to yield savings increasing from $300 million this year to $700 million by 2027, as per Moynihan’s comments to analysts.
In the past year, the bank’s workforce has contracted by approximately 3,400 employees, reflecting a 5% reduction in managerial positions. However, it remains uncertain how much of this decrease can be attributed directly to the implementation of AI.
News Courtesy of CNBC
