Banks report 1,000+ AI use cases as spending goes permanent

Key Takeaways

• JPMorgan now has roughly 1,000 AI use cases under development across the company
• Bank of America has approved 300 AI use cases with 100+ already deployed in operations
• Goldman Sachs sees AI infrastructure buildout as a major financing opportunity

The big U.S. banks just posted Q2 2026 earnings, and the real story wasn't revenue beats or credit quality. It was how much airtime AI got on earnings calls. JPMorgan Chase, Bank of America, Citigroup, Goldman Sachs, and Wells Fargo all topped analyst expectations. But when executives talked about where the money is going next, technology spending dominated the conversation.

The shift is structural. AI spending is no longer a line item for innovation labs or pilot programs. It's becoming permanent operating expense, embedded into how these banks run their businesses.

How many AI projects are banks actually running?

JPMorgan Chase Chairman and CEO Jamie Dimon said the bank now has roughly 1,000 AI use cases under development. That's not 1,000 experiments in a sandbox. These are projects spread across the entire company, touching everything from trading to compliance to customer service.

Dimon was careful not to oversell it. "AI will have its give-and-takes," he said on the July 14 conference call. "The ultimate beneficiary of AI will be our customers." His logic: competitors will adopt the same capabilities over time, so the efficiency gains won't stay locked inside any single bank. They'll flow through to customers as better products and lower prices.

Bank of America painted a similar picture but with more granular numbers. CFO Alastair Borthwick said the bank has approved approximately 300 AI use cases, with more than 100 already deployed throughout the organization. Applications range from software development to tools used by relationship managers and financial advisers. This isn't AI isolated inside an innovation team. It's woven into day-to-day operations.

What's driving the investment?

Stable credit and healthy consumer spending gave banks room to keep investing. Bank of America CEO Brian Moynihan pointed to continued labor-market strength as the key factor supporting household finances. The bank's provision for credit losses actually declined from a year earlier, while average deposits rose to $2.02 trillion and average loans increased to $1.22 trillion.

With credit quality holding up, banks don't need to hoard capital for loan losses. That frees up budget for technology.

Citigroup CEO Jane Fraser made the calculus explicit. The bank is prepared to step up investment during the second half of the year if business conditions remain favorable, with AI sitting alongside technology platforms and marketing as priorities.

“We're making investments across the flywheel. It's also importantly in AI to drive scale economics as well. All of this will translate into measurable growth.”

— Jane Fraser, CEO, Citigroup

When analysts asked whether those investments were primarily defensive or intended to capture new business, Fraser's answer was one word: "Both."

Goldman sees AI as a financing opportunity

Goldman Sachs took a different angle. Chairman and CEO David Solomon connected AI to client demand for financing. The rapid expansion of AI infrastructure is producing financing needs that extend beyond Silicon Valley.

"We are in the relative early innings of a very, very significant AI buildout cycle," Solomon said. "We see lots of opportunities to deploy capital to our clients to finance this infrastructure buildout." Investment in data centers, energy production, and related infrastructure are driving advisory, financing, and capital markets activity.

This is Goldman playing banker to the AI boom itself. While other banks are buyers of AI capabilities, Goldman is positioning to profit from lending to the companies building the underlying infrastructure.

Digital banking as operating platform

The emphasis on AI was matched by consistent commentary about digital banking. Executives described mobile banking and digital engagement not as customer conveniences but as operating platforms that lower servicing costs while deepening customer relationships.

Bank of America reported approximately 50 million active digital banking users, about 24 million active Erica users, and roughly 70% of consumer sales completed through digital channels. Management highlighted AI tools used internally by employees, reinforcing that digital transformation extends beyond customer-facing applications.

The numbers suggest digital isn't optional anymore. When 70% of sales happen through digital channels, the mobile app isn't a nice-to-have. It's the primary distribution system.

What this means for fintech

For fintech companies, these earnings calls signal two things. First, the large banks are serious about AI and willing to spend. That means more procurement opportunities for enterprise AI vendors, but also more competition from banks building in-house. Second, the banks are framing AI as a permanent expense, not a project with an end date. Budgets aren't going to snap back.

The catch is Dimon's warning about benefits flowing to customers rather than staying with banks. If AI efficiency gains get competed away, the winners might be consumers and the AI vendors, not the banks themselves. That's a bet on market structure, and it's too early to know how it plays out.

Frequently Asked Questions

How much are big banks spending on AI in 2026?

JPMorgan's overall technology budget is around $17 billion annually, with an increasing share going to AI and machine learning. Bank of America has committed billions to technology and AI investment. Exact AI-specific breakdowns aren't disclosed, but executives describe it as permanent operating expense rather than project spending.

What AI use cases are banks deploying?

Applications span software development, trading algorithms, risk management, fraud detection, customer service chatbots, and tools for relationship managers and financial advisers. Bank of America has deployed over 100 use cases across these areas.

Will AI reduce bank operating costs?

Executives were cautious about promising cost cuts. Jamie Dimon suggested efficiency gains will ultimately benefit customers rather than bank shareholders, as competitors adopt similar capabilities and compete on price and service.

How are banks using AI internally?

Beyond customer-facing applications, banks deploy AI tools for employee productivity. Bank of America highlighted AI tools used by employees, and software development assistance is a common use case across major banks.

Is bank AI spending defensive or growth-oriented?

Citigroup CEO Jane Fraser answered this directly: both. Banks are investing to defend against competitors while also capturing new business opportunities through improved capabilities.

Source: PYMNTS | / PYMNTS