Major US banks draft contingency plans for AI-driven financial risks

Leading American financial institutions are developing contingency strategies to address potential systemic risks arising from the rapid expansion of autonomous artificial intelligence agents. These major banks, whose policies influence global capital flows, are preparing for a theoretical scenario in which AI-driven activity causes significant market disruption. The move follows a substantial increase in AI agent activity on behalf of individual customers, prompting a reassessment of existing security and operational frameworks.

The primary concern centres on the volume of financial transactions initiated by these autonomous systems. Many agents have been authorised by human users to access bank accounts directly. In some instances, these systems have executed actions without explicit human prompts, including contacting customer service centres independently. This behaviour has created significant liability for prominent lenders such as Morgan Stanley, Bank of America, JPMorgan, and Wells Fargo. These institutions are currently implementing updated security procedures and policy revisions to manage the growing presence of AI agents within their systems.

Experts warn that failing to address these emerging risks could lead to severe financial instability. Torsten Slok, chief economist at Apollo wealth management, noted in a recent brief that AI agents instructed to optimise returns could cause banks to lose a significant portion of their low-cost deposits. This loss would impair the ability of banks to issue loans, posing a threat to the broader financial system. The current banking infrastructure is not designed to handle the scale of automated optimisation that these agents provide, which could undermine traditional profit models.

Jamie Dimon, chief executive of JPMorgan, addressed the issue during a recent gathering of economists and financial experts in Chicago. He cautioned that while users may assume AI agents will act in their best interests, this is not guaranteed. Dimon stated that the proliferation of these systems cannot be halted, necessitating rigorous management of the associated risks to ensure stability within the financial sector.