Bank of America CEO Brian Moynihan said Wednesday that the bank hired 1,000 contractors during the second quarter to fix software vulnerabilities. Moynihan said sophisticated AI models, including Anthropic's Mythos, had uncovered software weaknesses. Moynihan said the contractors continue working alongside the bank's existing team of 3,000 specialists.
Speaking after Bank of America's third-quarter earnings announcement, Moynihan said the bank moved quickly earlier this year to strengthen internal software and vendor code. Moynihan said the effort deployed thousands of bank employees alongside external contractors. Moynihan said in a CNBC interview that "the risk is real risk" when advanced AI models emerged. Moynihan said industry participants had discussed how to address the challenge quickly.
Moynihan told analysts earlier on Wednesday that the bank incurred third-quarter costs of "a couple hundred million plus" for software repairs and regulatory matters tied to anti-money laundering compliance. The U.S. Treasury announced more than $1.21 billion in penalties against Bank of America on Tuesday. The Treasury said the bank had failed for years to report over $5 billion in suspicious transactions.
Bank of America shares fell about 5% on Wednesday after the bank reported disappointing third-quarter 2026 results. Adjusted earnings of $1.08 per share missed the analyst consensus estimate of $1.11. Revenue, net of interest expense, rose 3% year over year to $29.96 billion. Revenue missed analysts' expectations of $30.69 billion. Bank of America shares closed 4.76% lower at $51.39 on Wednesday. The stock has declined about 6.5% year to date.
Moynihan said the bank must remain ahead of emerging risks. Moynihan also cautioned that the companies developing the software are the same companies trying to sell services to the bank. Financial regulators in the U.S. and Europe were reported earlier this week to be intensifying scrutiny of AI. The scrutiny focuses on whether cyberattacks, autonomous systems or inadequate controls could destabilize banks and markets.
Anthropic introduced Mythos earlier this year, highlighting the model's ability to identify software vulnerabilities that hackers could potentially exploit. Anthropic made Mythos available in April to a limited group of banks, technology companies and government agencies. Moynihan's remarks provide one of the first detailed accounts from a major U.S. company of staffing and financial resources devoted to protecting software systems against Mythos. JPMorgan Chase CEO Jamie Dimon warned in July that risks stemming from Mythos are a "real issue". Dimon said U.S. government officials were focused on addressing the potential risks.
Bank of America Hires 1,000 Contractors to Address Software Flaws Exposed by Anthropic's Mythos AI
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Summary
CFT concerns pushed Bank of America to hire 1,000 contractors in Q2 2026 to fix software flaws revealed by Anthropic's Mythos AI. They joined 3,000 internal staff to audit code. Q3 repair costs hit “a couple hundred million plus” for compliance. The U.S. Treasury fined the bank over $1.21 billion for failing to report suspicious transactions. Shares fell 5% after earnings missed estimates at $1.08 per share. The move reflects pressure from regulators and rising scrutiny in liquidity and crypto markets.
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