Financial AI agents could heighten systemic risk, but adoption may take years

The chief economist at Apollo warned that mass adoption of AI agents optimizing users’ investments could trigger a bank run. Gary Gensler, during his final years as SEC chair, also warned that algorithmic decisions converging at scale could undermine market stability; similar choices by personal finance agents could potentially cause a massive flash crash. Their similar actions could also affect areas beyond markets by removing economic friction, one analysis argued.

Adoption may be gradual: one estimate put current use of personal AI agents in the single-digit millions, and wider use would require people to authenticate, link bank accounts and build trust over time. Some banking services already proactively move customers’ funds into money-market accounts or T-bills. If agents spread over a couple of years, banks and money-market funds may adapt, potentially limiting the disruption.