Search results for Torsten Slok
AI & Enterprise
Gensler\'s 2020 AI warning returns to spotlight as Ripple\'s Schwartz says much of it makes sense
A 2020 paper by former U.S. Securities and Exchange Commission chair Gary Gensler warning that the spread of deep learning in finance could create new risks is drawing renewed attention as AI agents begin to take part in financial decision-making. David Schwartz, former chief technology officer at Ripple, agreed that much of the paper “makes sense,” including concerns about automated decisions moving markets in the same direction. He rejected the idea that smarter AI would necessarily behave irrationally.
Finance
Warning that rampant spread of financial AI agents could trigger bank run
A warning has been raised that personal AI assistants could trigger large deposit outflows from traditional banks if they automatically shift users’ cash to higher-yield accounts. Apollo chief economist Torsten Slok said AI agents optimising household cash returns could undermine banks’ low-cost deposit base. He said that if many households act simultaneously, deposits could move out of banks in a rush. Companies have begun blocking AI assistants’ access to services.
AI & Enterprise
Meta AI agent Muse shakes up subscription model built on forgetfulness and hassle
Meta’s personal AI agent app Muse is offering a feature that finds subscriptions users have forgotten or left due to hassle and cancels them, CNBC reported on Sept. 27. Studies cited show subscription spending has risen, while easier cancellation can sharply increase churn. Subscription management firm ScribeUp says cancellation activity is rising and it now tracks about 200,000 recurring-payment merchants. Analysts warn AI assistants could also shift household cash to higher-yield accounts, affecting banks’ deposits.
