Bank of America raises minimum wage to $25 as AI reshapes workforce

Bank of America has raised its U.S. minimum wage to $25 per hour, fulfilling a “25 by 2025” commitment made in 2021 and translating to annual salaries exceeding $50,000 for full-time employees. The announcement comes as CEO Brian Moynihan acknowledged that artificial intelligence is shrinking some departments, though the bank is focusing on redeploying and reskilling affected workers.

The big picture: This wage increase represents a 67% jump since 2017, when Bank of America’s minimum wage was $15 per hour, positioning the financial giant at the forefront of corporate wage policy during a period of slowing employment growth and rising unemployment rates.

Key details: The pay increase impacts thousands of employees nationwide and comes with additional strategic hiring commitments.

• Full-time employees now earn more than $50,000 annually, compared to less than $30,000 eight years ago.
• The bank previously raised its minimum wage to $24 per hour just last year.
• Bank of America plans to hire 10,000 military veterans and 8,000 community college graduates over the next five years.

AI’s impact on workforce: CEO Brian Moynihan directly addressed how artificial intelligence is reshaping the bank’s operations during a Bloomberg TV interview.

• “The key to that is really redeploying people and re-skilling them,” Moynihan said regarding AI’s effect on department sizes.
• “We have to be more mindful about training them along multiple dimensions than we might have been two or three years ago.”

Economic context: The timing reflects broader labor market challenges and the bank’s strategy to stimulate economic growth in its communities.

• U.S. employment growth has slowed with steadily rising unemployment rates.
• A Bank of America Institute survey found lower-income families experienced the slowest after-tax earnings growth since 2016 in August.
• Consumer spending is facing headwinds across the economy.

Additional benefits: The wage increase is part of a broader compensation strategy that extends beyond base pay.

• Since 2017, Bank of America has distributed nearly $5.8 billion in restricted common stock as incentive awards.
• These stock awards cover over 97% of the workforce, supplementing regular compensation.
• The bank offers tuition assistance, professional development programs, and career mobility resources.

Why this matters: Bank of America’s wage leadership comes at a critical economic moment when AI automation is simultaneously creating workforce displacement concerns while companies compete for talent in key growth markets.