Bank of America Hired Contractors to Patch Software Flaws Exposed by AI

Bank of America hired approximately 1,000 external contractors to bolster its internal and vendor software security, responding to vulnerabilities exposed by advanced artificial intelligence models such as Anthropic's Mythos.

CEO Brian Moynihan told CNBC that the software remediation efforts, combined with anti-money laundering compliance costs, added hundreds of millions of dollars to the bank's third-quarter expenses. He expects these costs to decrease over time as the patching is completed.

The move highlights the dual nature of AI. While advanced models can improve efficiency and drive savings, they can also uncover legacy software flaws that require costly repair efforts.

Despite these defensive expenditures, Bank of America is pursuing AI for cost reduction. The bank has about 130 internal AI projects, which are projected to generate $700 million in savings by 2027. The company's workforce has decreased by approximately 3,400 employees over the past year.