Bank of America Puts AI at the Center of Its Credit Card Growth Plan

Bank of America is restructuring its credit card business and expanding its use of artificial intelligence as part of a plan to increase profits from consumer banking. Executives told Bloomberg the bank aims to lift annual profit from the consumer unit to $20 billion by the end of the decade, a level reached only twice in U.S. banking history. Credit cards are a core component of that plan because of their scale, frequency of use, and ability to generate recurring revenue.

The bank said it is investing millions of dollars in technology, including AI systems, to grow its customer base, increase card usage, and improve efficiency. Executives described AI as a tool to improve decision-making across marketing, underwriting, and operations rather than as a standalone product.

AI-driven Targeting and Rewards Redesign

Bank of America is using AI to analyze customer data and determine when individuals are most likely to respond to credit card offers. Executives said these systems help identify life events such as home purchases or marriage, allowing the bank to time outreach more precisely than traditional marketing methods.

The AI-supported targeting strategy is tied directly to changes in the bank’s credit card rewards. Bank of America plans to introduce new incentives for customers who maintain higher deposit balances, linking card rewards more closely to broader banking relationships rather than standalone card spending.