AI Agents Threaten Apple's Services Revenue, Bank of America Warns

Bank of America has issued an investor note warning that AI agents like Meta's Muse could threaten Apple's services revenue. According to the note, AI agents can bypass Apple's ecosystem and capture product discovery, referrals, and transactions currently handled by Apple.

The risk for Apple is that it can keep every handset sale but still lose these important functions, said Bank of America analyst Wamsi Mohan. Despite this new risk, Mohan maintained a 'Buy' rating on Apple with a $370 price target.

Mohan pointed out that modern iPhones have enough computing power to run AI agents, making software execution and integration the bigger challenge for Apple. He also noted that Apple's Siri AI lacks some of Muse's capabilities, including persistent background tasks and broad third-party action support.