- Bank of America added 1,000 third-party contractors in Q2 to patch software flaws exposed by Anthropic's Mythos, on top of 3,000 internal staff in the area.
- The bank spent a couple hundred million plus on software remediation and AML compliance in Q3, and shares slumped as much as 8% on Oct 14.
- CEO Brian Moynihan said remediation costs should decline over time, while about 130 internal AI projects are expected to lift savings from $300 million this year to $700 million in 2027.
- Head count fell about 3,400 over the past year as the firm cut roughly 5% of managers, and it is unclear how much of that reduction is attributable to AI.
Quotes
“We put on 1,000 contractors to help us do the patching work in the second quarter, and those people remain here today, helping us, on top of the 3,000 people we have in that area”
“Once you patch, you don't have to patch as much.”
“We've got to stay ahead of them”