What shaped 2025

From economic resilience to AI shifts, Bank of America Institute explores the trends that defined the year

• Bank of America Institute is dedicated to uncovering powerful insights that move business and society forward. This year, we have delivered over 100 publications across our three pillars: Economic Insights, Sustainability and Transformation.
• Economic resilience has been a key theme, although affordability looks different across households. A “K-shaped” recovery emerged in the second half of the year, with the gap between higher-income and lower-income households most prominent in spending and wage growth. Plus, the small business job market cooled and the housing market remained tight.
• Meanwhile, from a transformation lens, AI shifted from hype to hard impact in 2025 — driving GDP and reshaping industries. As adoption accelerates, the challenge is clear: scale responsibly while managing risk and equity.
• From the state of the consumer and businesses to the housing market and technological innovations, our 2025 year in review serves as a reflection of key trends.

Read our full analysis for a more in-depth look at these trends.