Bank of America CEO says AI spending will drive returns in 2026, bullish on India growth

Bank of America expects investments in investment in artificial intelligence (AI) to drive returns in 2026, CEO Brian Moynihan said, expressing optimism about growth in both the US and India. 

He said the bank is still in "early days" as far as agentic AI is concerned. 

Moynihan outlined BofA’s $14 billion technology budget, including roughly $4.5 billion allocated for AI initiatives. He said tools like the bank’s virtual assistant Erica, which serves 20 million customers, were already generating tangible

returns and improving efficiency across thousands of processes for clients.

“AI gives us another way we can actually help [clients] solve what they need to do,” he said in a conversation with CNBC-TV18's Shereen Bhan on the sidelines of World Economic Forum in Davos.

On India, Moynihan said he expected 6.5% GDP growth in 2026, pointing to policies that have made the country increasingly business-friendly.

Moynihan's interpretation of US commerce secretary Howard Lutnick on the US-India trade deal is to open the market on a fair basis with investments flowing into the US as well. “India can play well into that,” he added.

BofA, he added, would continue expanding in India, particularly in corporate and treasury services, building on investments of over $100 million in its payments platform in the last few years.

Moynihan also expressed confidence in the US Federal Reserve’s independence amid ongoing speculation about its leadership as US President Donald Trump increasingly seeks to exert influence over the apex bank.