AI assistants helping people maximize their cash could trigger a bank run, Apollo's chief economist warns (www.businessinsider.com)

Apollo's chief economist, Torsten Slok, has raised concerns that AI assistants, like Meta's Muse, may trigger a banking crisis by prompting users to move their deposits from traditional banks to higher-yield accounts offered by fintech firms. As consumers increasingly rely on these AI agents to maximize their cash returns, there’s a risk that widespread action could lead to a significant exodus of deposits from banks, undermining their ability to lend. Slok warns that if AI-driven financial optimization becomes the norm, banks could lose a crucial source of low-cost deposits essential for their operations. This phenomenon highlights a significant shift in how individuals manage their finances, as personal AI agents gain popularity for assisting users with everyday tasks. However, the potential disruption to traditional banking could pose challenges for monetary stability, especially as Apollo, which has a massive credit operation aiming to grow to $1.2 trillion by 2029, operates in direct competition with banks. Moreover, with some businesses reacting to the surge in requests from AI agents by restricting access to their services, the future landscape of finance could see a clash between advancing technology and traditional regulatory frameworks.