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Artificial intelligence (AI) is no longer a future concept — it is becoming a powerful
economic engine. According to Bank of America CEO Brian Moynihan, the surge in
AI investment is beginning to show a meaningful and growing impact on the U.S.
economy, with even stronger effects expected in the years ahead.
Speaking in a recent interview with Bloomberg Television, Moynihan emphasized
that AI-driven capital spending, automation, and productivity gains are
increasingly shaping economic growth. While AI is not the sole driver of expansion,
its marginal contribution is becoming “pretty strong,” positioning the technology
as one of the most influential economic forces of the decade.
As major financial institutions, technology giants, and private equity firms double
down on AI, economists and investors alike are watching closely. The implications
stretch far beyond Silicon Valley — touching employment trends, corporate
efficiency, GDP growth, financial markets, and long-term competitiveness of the
U.S. economy.
AI Investment Is Accelerating Across the Economy
Moynihan noted that AI investment has been steadily building throughout the year,
particularly in areas such as cloud computing, data centers, advanced software,
and automation tools. This wave of capital spending is expected to intensify in the
coming years, creating ripple effects across multiple sectors.
“The AI investment’s been building during the year and is probably a bigger
contributor next year and the years beyond,” Moynihan said. “AI is kicking in more
and more.”
Major corporations are allocating billions of dollars toward AI infrastructure,
including high-performance chips, large-scale data centers, and enterprise AI
platforms. These investments not only fuel technological innovation but also
stimulate demand for construction, energy, logistics, and professional services —
all of which contribute directly to economic growth.
Private equity firms such as Blackstone have also highlighted the role of AI-related
data center spending in powering the U.S. economy, reinforcing the idea that AI is
becoming a foundational pillar of modern growth.
Bank of America Forecasts Stronger U.S. Economic Growth
Bank of America expects the U.S. economy to grow 2.4% in 2026, up from
approximately 2% growth in 2025. While traditional drivers such as consumer
spending and business investment remain important, AI-related expenditures are
emerging as a key contributor to this acceleration.
Moynihan acknowledged that the labor market has shown signs of softening, but
he described the trend as a normalization rather than a warning signal of an
impending downturn. From BofA’s perspective, productivity improvements enabled
by AI may help offset labor constraints and support sustainable growth.
“The markets are valuing that future growth rate, and that’s why they’ve been very
constructive this year,” Moynihan explained.
This optimism is reflected in equity markets, where AI-linked stocks and
infrastructure providers continue to attract significant investor interest.
Limited Downside Risk From an AI Slowdown
One concern frequently raised by analysts is the risk of an AI investment bubble.
However, Moynihan believes the downside risk to the broader U.S. economy
remains limited, even if the AI sector experiences a pullback.
According to the Bank of America CEO, AI investment is currently concentrated
among a relatively small group of companies with strong balance sheets and long-
term contracts. As a result, any cooling in the sector would likely have minimal
spillover effects on consumers or widespread employment.
“As a lender, we look at the leverage on these projects and make sure we’re
comfortable with that and the duration of the contracts,” Moynihan said.
This disciplined approach to financing AI infrastructure reduces systemic risk and
strengthens confidence in the long-term sustainability of AI-driven growth.
How AI Is Transforming Bank of America Internally
Beyond macroeconomic effects, Bank of America is actively deploying AI within its
own operations. Moynihan described the bank’s approach as “augmented
intelligence” — combining human expertise with AI tools to improve efficiency,
accuracy, and customer experience.
AI is being used across underwriting, audit, legal, compliance, and finance
functions, enabling employees to make faster and more informed decisions. Rather
than replacing workers, the technology enhances productivity and allows staff to
focus on higher-value tasks.
One of the most visible examples is Erica, Bank of America’s virtual assistant. Since
its launch, Erica has handled more than 3 billion customer interactions, helping
users manage their finances 24/7. The assistant’s capabilities have expanded
significantly, with the number of questions it can answer increasing from 200 to
800.
This internal adoption illustrates how AI is reshaping financial services from the
inside out — improving service delivery while controlling costs.
AI and Employment: Fears vs. Reality
Despite widespread concerns that AI could lead to mass job losses, current data
suggests a more nuanced reality. According to the Bank of America Institute, AI
has so far had a limited negative impact on employment, even as it boosts
productivity and economic output.
The institute reported that AI-related capital expenditures, particularly in software
and computing, were key drivers of recent GDP growth. Importantly, there was little
evidence of large-scale displacement of workers.
Instead, AI is changing how work is performed. Routine tasks are increasingly
automated, while demand grows for roles involving oversight, analysis, strategy,
and creativity. This shift may help explain why employment has softened without
collapsing — a sign of transition rather than disruption.
AI’s Role in GDP Growth and Productivity
U.S. GDP growth has remained resilient, even amid global uncertainty and tighter
financial conditions. After a brief slowdown, growth rebounded strongly, supported
in part by technology and AI investment.
AI enhances productivity by enabling faster decision-making, reducing operational
inefficiencies, and optimizing supply chains. Over time, these gains compound,
allowing companies to produce more with fewer resources — a key driver of long-
term economic expansion.
As AI tools become more accessible across industries such as healthcare,
manufacturing, retail, logistics, and finance, their aggregate contribution to GDP is
expected to increase significantly.
Financial Markets and Investor Confidence
Investor sentiment around AI remains strong. Bank of America’s stock, for example,
currently carries a Strong Buy consensus rating from Wall Street analysts,
reflecting confidence in the bank’s strategy and exposure to AI-driven growth.
The average price target for BAC stock implies additional upside, supported by
expectations of higher profitability, improved efficiency, and sustained economic
expansion.
More broadly, financial markets continue to reward companies that demonstrate
clear AI integration strategies, signaling that investors see artificial intelligence as
a long-term value creator rather than a short-lived trend.
AI and the Evolution of Treasury Management
Beyond banking and consumer services, AI is also transforming enterprise finance
and treasury management. Once viewed as a back-office function, treasury has
evolved into a real-time financial command center.
Predictive cash forecasting, automated risk management, and real-time analytics
are now essential tools for modern CFOs. AI-powered treasury management
systems continuously monitor liquidity, update forecasts, and flag risks — all at
machine speed.
Rather than replacing human judgment, these systems augment decision-making,
allowing finance leaders to respond faster to volatility and complexity. As a result,
treasury is increasingly central to corporate strategy, capital allocation, and risk
governance.
Looking Ahead: AI as a Long-Term Economic Engine
The message from Bank of America’s leadership is clear: AI is no longer optional,
and its economic impact is only beginning to unfold. While the technology will not
solve every economic challenge, its contribution to productivity, investment, and
innovation is becoming increasingly significant.
As AI investment accelerates, the U.S. economy may benefit from stronger growth,
improved efficiency, and enhanced global competitiveness. Companies that
successfully integrate AI into their operations are likely to outperform, while
economies that support AI development may gain a lasting advantage.
For policymakers, investors, and business leaders, the challenge now is to manage
this transformation responsibly — ensuring that AI-driven growth is inclusive,
resilient, and sustainable.
Artificial intelligence is steadily reshaping the economic landscape, and Bank of
America CEO Brian Moynihan believes its influence will grow stronger in the years
ahead. From GDP growth and productivity gains to corporate efficiency and
financial market confidence, AI is emerging as a defining force of the modern
economy.
While risks remain, the current evidence suggests that AI’s benefits are broadening
faster than its downsides. As investment continues to pour into the sector, AI may
prove to be one of the most powerful drivers of U.S. economic growth in the next
decade.
