Agentic AI Could Pose Risk to Banks by Automatically Moving Deposits for Higher Yields
Apollo Chief Economist Torsten Slok warns that agentic AI assistants, designed to optimize returns for consumers, could inadvertently destabilize the banking system. These AI agents may automatically shift deposits between banks in pursuit of higher yields, potentially triggering a 'yield run' similar to traditional bank runs but driven by algorithmic behavior rather than panic. Such activity could lead to rapid and unpredictable shifts in deposit flows, challenging banks’ liquidity management strategies. The concern is particularly relevant as more households adopt AI-driven financial tools that prioritize maximizing returns without regard for broader systemic stability considerations.
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Topics: Artificial Intelligence Banking System Consumer Behavior Interest Rates