BofA, seeking to extend careers, will train more apprentices

• Key insight: Bank of America is doubling down on its apprenticeship programs, revealing that the future will require many human workers alongside AI.
• Supporting data: The new commitment comes in addition to the 800 apprentices BofA says it already hires every year.
• Expert quote: "It's the right thing for businesses to do, because having you leave and I go hire someone else to replace you is just turmoil." —BofA CEO Brian Moynihan

Bank of America is investing heavily in artificial intelligence, but it's also spending on human workers.

The nation's second-largest bank plans to hire 1,000 extra trainees for its apprenticeship programs over the next two years, it announced on Thursday — in addition to the 800 apprentices it already hires per year.

The hires are an investment in a future, CEO Brian Moynihan said, in which employees will not necessarily be replaced by AI but will need to know how to use it.

"We as managers have to realize one of our jobs is to make sure this transition works for everybody," Moynihan said during an interview with Punchbowl News on Thursday.

BofA's apprenticeship programs provide trainees, who don't need to have college degrees, with paid on-the-job experience and instruction, usually lasting one year. The goal is to prepare them for roles in consumer banking, technology, operations and other departments.

After completing the program, trainees typically receive industry-recognized credentials and a chance to get hired by the bank. But even if they end up working somewhere else, Moynihan said, the bank is happy to have trained them.

"If you get them working in big companies like ours, what happens?" Moynihan said. "They continue with the company, they get tuition reimbursement, they get good benefits. And by the way, if they leave us to go to a small or medium-sized employer, that's a service we've done to that community by providing training that those companies may not be able to provide."

In recent years, BofA has embraced AI as a tool for both employees and customers. The bank has invested heavily in its consumer-facing AI assistant, Erica, and has also rolled out internal AI programs that it says more than 90% of its employees now use.

But through programs like its apprenticeships, the company has also devoted significant resources to developing human talent, often starting at a very young age.

The average private-sector career in finance, according to the Bureau of Labor Statistics, is about five years. Because of the costs associated with hiring and training new employees, banks are looking for ways to hold onto their workers for longer periods of time.

"You want that career path because frankly, you don't have to retrain them, you'd have to rehire, you don't have to find new employees," the CEO said. "So that's what we're trying to achieve."

Read more:

• AI might be in its bubble phase. How exposed are banks?
• Safety and soundness rule puts nonmaterial risk onus on banks
• Banks, credit cards fall out of favor for bill pay

Apart from its own employees, the Charlotte, North Carolina-based bank is also investing in the American workforce in general. On Thursday the bank said it would be donating $150 million to job-training organizations across the country over the next five years, in addition to the $40 million it gave to similar groups last year.

This funding, Moynihan said, is designed to help provide other young Americans with the kind of training BofA provides its own workers.

"We have a team that is pretty good at this already," the CEO said. "We hire a lot of kids from community colleges, a lot of kids directly out of high school — we have lots of different programs. But this is to provide that architecture, frankly, for other companies."

In announcing the two workforce initiatives, Moynihan thanked the U.S. Department of Labor, which is currently led by Keith Sonderling, President Trump's choice for acting secretary of the agency.

"We appreciate the spirit of reform and practicality that the Department of Labor is bringing to this important work, which will lead to opportunities for the private sector to do even more," Moynihan said in a statement.

Sonderling returned the compliment, praising BofA's efforts.

"I applaud Bank of America for investing in apprenticeship and workforce development programs that prepare Americans for high-skilled, high-paying jobs while helping employers build the skilled workforce they need in their local communities," Sonderling said in a statement.

BofA said that 40% of its hires do not have a bachelor's degree. Training workers right out of high school, community college or the military may be expensive, Moynihan said, but in the long run it benefits employees and employers alike.

"It's the right thing for businesses to do, because having you leave and I go hire someone else to replace you is just turmoil," he said. "You've gotta take the risk."