AI News Feed
Market watch
Microsoft and Japan's police agency dismantle phishing marketplace tied to over a billion scam messagesTimeTeller Pitches Circadian Testing as a Timing Tool for Cancer CareDell stock plunges 11%, leading data center sell-off on concerns about enterprise AI timingNASA Details Solid-State Battery Work for the Moon's Extreme TemperaturesFitbit Edge and Fitbit Air Diverge Beyond the Screen, Engadget ReportsApple Intelligence to Launch in China in December Without Siri AI, Bloomberg Reports
Microsoft and Japan's police agency dismantle phishing marketplace tied to over a billion scam messagesTimeTeller Pitches Circadian Testing as a Timing Tool for Cancer CareDell stock plunges 11%, leading data center sell-off on concerns about enterprise AI timingNASA Details Solid-State Battery Work for the Moon's Extreme TemperaturesFitbit Edge and Fitbit Air Diverge Beyond the Screen, Engadget ReportsApple Intelligence to Launch in China in December Without Siri AI, Bloomberg Reports
Companies

Bank of America Hires 1,000 Contractors to Patch Software Flaws Exposed by Anthropic's Mythos

Bank of America CEO Brian Moynihan told CNBC the bank hired 1,000 contractors to patch software flaws exposed by advanced AI models including Anthropic's Mythos, adding to third-quarter remediation costs.

AI News Feed · 2026-10-15 05:42

In an interview after the bank's third-quarter earnings release, Moynihan said the company moved earlier this year to bolster a wide range of internal and vendor code, using thousands of employees and outside personnel. “That risk is real risk, and that's why when the frontier-type models came out. … A lot of us sat down and said, ‘How do we figure out how to get through this quickly?’” Moynihan told CNBC's Leslie Picker.

“We put on 1,000 contractors to help us do the patching work in the second quarter, and those people remain here today, helping us, on top of the 3,000 people we have in that area,” he said. Bank of America spent a “couple hundred million plus” on software remediation and regulatory issues related to anti-money laundering compliance in the third quarter, Moynihan told analysts earlier Wednesday.

The comments are among the first by a major U.S. corporation to specify the manpower and dollars spent to protect software systems from Mythos, which was released to a small group of banks, technology firms and government agencies in April. They also highlight the dual-edged nature of AI: while it can help companies save money by boosting productivity, models like Mythos can uncover and exploit decades-old software flaws, forcing firms into a costly defensive scramble.

“We've got to stay ahead of them, and we've got to be mindful that the people doing the software development are the people trying to sell us the services,” Moynihan said. Still, Moynihan, speaking as his company's shares slumped as much as 8% Wednesday, sought to reassure investors that the spending increase was temporary. “Once you patch, you don't have to patch as much. … The pipeline moves through,” Moynihan said, adding that the bank expects remediation costs to decline over time.

In other areas, AI is helping to reduce expenses. Bank of America has about 130 internal AI projects, and savings from those efforts are expected to rise from $300 million this year to $700 million in 2027, Moynihan told analysts. Bank of America's head count fell by about 3,400 employees in the past year as the firm cut roughly 5% of managers, he said. It is unclear how much of that workforce reduction is attributable to AI.