Treasury Boss Dismisses AI Bubble Fears as Banks Block Rogue Bots
Treasury Secretary Scott Bessent downplays AI crash fears, while banks tighten security against AI bot threats.
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America’s top financial official has dismissed fears of an AI industry crash, comparing it to the dotcom bubble of the early 2000s. Treasury Secretary Scott Bessent told investors and executives at the annual J.P. Morgan / Robin Hood Investors Conference in New York City that the AI boom is not heading for a ‘systemic’ collapse. While Bessent downplayed concerns about the AI boom hurting markets, major banks are scrambling to protect customer accounts from potential AI agent breaches.
AI Industry Not a Dotcom Bubble
Bessent said in an interview with Nir Bar Dea, Bridgewater chief executive, that he does not see a systemic problem in the AI industry. He contrasted the current boom with the dotcom bubble that burst in 2000 after a surge in internet startups. ‘This isn’t Pets.com,’ Bessent said, referring to one of the many online startups that crashed during the dotcom bubble. ‘The smartest people in the world — who have 99 percent of their net worth in these companies and have built the most profitable companies in the world — they believe in it.’
Major Banks Tighten Security Against AI Bots
Tech giants such as Microsoft, Google, and Meta are different from the dotcom-era startups, Bessent said. ‘What is different this time than the ’90s is we are seeing the so-called hyperscalers … the most cash-rich companies, probably in the history of the world, they are willing to use their own money, their own balance sheets to invest in this,’ Bessent told Axios.
Meanwhile, several major U.S. banks are working to restrict AI companies’ agents from their services after detecting unauthorized bot access to customer accounts. JPMorgan Chase, which co-hosted the Robin Hood conference, urged customers to keep their login information private. ‘Customers should not give their username and passwords to anyone. We support secure, customer-authorized data sharing through open banking providers to meet customers’ needs while keeping their accounts safe,’ a Chase spokesperson told the DCNF.
Wells Fargo confirmed it is cracking down on AI agents. ‘Wells Fargo has taken steps to block unauthorized agents from accessing customer accounts,’ a Wells Fargo spokesperson told the DCNF. Morgan Stanley has yet to detect any rogue activity from AI agents on its platforms, a bank spokesperson said. Bank of America did not immediately respond, and Citi did not provide a statement.
JPMorgan Chase and Citi permit AI agents with read-only access to customer account information, according to PYMNTS. The Treasury Department did not respond to the DCNF’s request for comment.
Source: Daily Caller
