AI Agents Could Drain Cheap Bank Deposits, Warns Apollo's Torsten Slok

Apollo Global Management Chief Economist Torsten Slok has issued a warning that the rapid rise of AI agents could lead to a significant outflow of cheap bank deposits. According to Slok, as AI-driven financial tools become more sophisticated, they may encourage depositors to move funds away from traditional low-interest bank accounts in search of higher yields. This shift could put pressure on banks that rely on stable, low-cost deposit funding, potentially squeezing net interest margins and forcing institutions to seek alternative funding sources. The warning highlights a growing concern in financial markets about how artificial intelligence and automation could disrupt traditional banking models, affecting liquidity and profitability across the sector.