As the Trump administration ramps up efforts to lead the way on "super intelligence," Federal Deposit Insurance Corporation Chair Travis Hill says it can be transformative, but won't necessarily move money out of banks as AI agents gain traction.
Speaking Wednesday at DC Fintech Week, Hill said his agency is assessing AI-related risks.
"This is obviously a very fast-moving area, and so I think at some point there will be some value in providing some additional clarity on how we're thinking about it from a supervisory perspective, but we're still contemplating that, just given the evolving and fast-moving nature of it," Hill said.
Over the past year, the FDIC has taken the stance that AI can improve banking, particularly in weeding out suspicious activity, and Hill has said he wants banks to innovate in the space. The agency has also said banks need to manage risks associated with AI.
On Wednesday, Hill also shared some insight on AI agents and the potential shift of funds from banks to high-yield savings accounts that offer more return to customers. AI agents, which can perform tasks on users’ behalf, are gaining traction but also introduce risks, including exposing bank accounts and making unauthorized purchases, The Wall Street Journal reported last week.
Multiple news reports have highlighted growing concerns that AI agents could accelerate deposit outflows by shifting funds from traditional bank accounts to higher-yield alternatives.
To that, Hill said, absent of AI agents, there are already services where customers can put their funds into high-yield savings accounts.
"It's worth also noting that there's a significant portion of deposits across the system that are business accounts, and those businesses have a lot of reasons for why they choose the banking relationships that they choose," Hill said.