Bank of America CEO admits that AI is shrinking some departments even as bank boosts minimum wage to $25 | Fortune

"Bank of America has announced a landmark pay increase, raising its U.S. minimum hourly wage to $25 as of early October. The starting salary will be more than $50,000, it added. The decisions fulfill a "25 by 2025" commitment made in 2021 and positions the financial giant at the forefront of American corporate wage policy, reinforcing its long-standing reputation as a leader in minimum pay for hourly employees across the nation."

"This latest adjustment brings Bank of America's minimum wage up nearly 67% since 2017, when its base hourly rate was $15. Prior to this change, the bank's minimum wage stood at $24 per hour-a rate set just last year-illustrating the company's steady dedication to raising worker compensation. For full-time employees, this new wage translates into an annual salary exceeding $50,000, compared to less than $30,000 just eight years ago."

"Sheri Bronstein, Bank of America's chief people officer, emphasized the enhanced starting salary is designed as a launchpad for long-term, sustainable careers within the organization. CEO Brian Moynihan acknowledged in a Bloomberg TV interview on Thursday, though, that the bank continues to implement artificial intelligence (AI), and this has shrunk its number of employees in some departments. "The key to that is really redeploying people and re-skilling them," he said. "We have to be more mindful about training them along multiple dimensions than we might have been two or three years ago.""

Bank of America will raise its U.S. minimum hourly wage to $25 effective early October, making the starting annual salary more than $50,000. The increase fulfills a "25 by 2025" commitment and continues a steady rise from a $15 base in 2017 and $24 last year. The change represents nearly a 67% increase since 2017 and affects thousands of full-time and part-time employees nationwide. Executives describe the higher starting pay as a launchpad for sustainable careers while noting AI has reduced staffing in some departments and emphasizing redeploying and reskilling employees amid softer employment growth and consumer headwinds.

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