America’s oldest bank spends billions on tech

In the world of banking, technology is rapidly changing the landscape. America’s oldest bank, BNY, has embraced this change by introducing “digital employees” into their workforce. These digital employees, numbering 134 in total, work tirelessly without the need for sleep or sick days. They perform specific repetitive tasks alongside human employees, allowing the latter to focus on more complex and engaging roles.

BNY’s CFO, Dermot McDonogh, highlighted that these digital employees are not just about cost savings but are aimed at unlocking capacity and optimizing potential for human employees. The bank has seen a decrease in its human workforce from 53,400 in 2023 to 48,100 currently, with AI playing a key role in driving efficiency and growth.

With an increasing focus on technology investments, BNY spent $3.8 billion on technology in 2025, representing about 19% of its revenue. This investment is part of a larger trend across Wall Street, where analysts and investors are keen to understand how AI expenses will translate into higher efficiencies and returns. BNY stands out among its peers for having the highest proportion of technology spend.

While there is a perception of an “AI arms race” in the banking industry, BNY has been identified as a potential beneficiary of AI advancements. According to Goldman Sachs’ research, BNY could see a potential 19% boost to earnings per share through productivity improvements driven by AI automation.

Despite the increasing presence of digital employees, BNY remains committed to upskilling its human workforce. The bank established an AI Hub and introduced a platform named Eliza to enable employees to leverage AI in their roles. Through training programs and AI bootcamps, BNY is empowering its employees to find creative ways to automate tasks and enhance productivity.

The name “Eliza” pays tribute to Elizabeth Schuyler Hamilton, the wife of BNY’s founder, Alexander Hamilton, reflecting the bank’s rich history and its commitment to embracing cutting-edge technology. By democratizing AI technology and investing in employee development, BNY is positioning itself at the forefront of innovation in the banking industry.

As BNY continues to evolve and adapt to the digital age, its blend of traditional values and technological innovation sets a compelling example for the future of banking.