Torsten Slok, chief economist at asset manager Apollo, is warning about the risk of a bank run triggered by AI agents. These automated agents could automatically move U.S. household deposits to higher-yielding accounts, offering returns of 3.3% to 5% per year versus just 0.1% for traditional checking accounts. Banks rely on cheap deposits to fund loans and generate interest margins; a massive outflow of these deposits would force them to find more expensive funding sources. This risk was first identified in a 2020 study by Lily Bailey and Gary Gensler, then a professor at MIT, who deemed existing regulations probably insufficient to handle widespread adoption of deep learning.
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