MIT AI Risk Repository · Risk Sub-Category · 62.31.02#2
Financial instability due to model homogeneity
Category: Impacts of AI (Financial Impacts)
Description
"The widespread use of similar models or algorithms across the financial sec- tor can lead to synchronized reactions to market signals, increasing volatility, triggering flash crashes, or market illiquidity [4]."
From Risk Sources and Risk Management Measures in Support of Standards for General-Purpose AI Systems (Gipiškis2024), as extracted by the MIT AI Risk Repository (CC BY 4.0).
Classification
- Subdomain
- 7.6 Multi-agent risks
- Causal entity
- Other
- Intent
- Other
- Timing
- Post-deployment
Subdomain definition: Risks from multi-agent interactions, due to incentives (which can lead to conflict or collusion) and/or the structure of multi-agent systems, which can create cascading failures, selection pressures, new security vulnerabilities, and a lack of shared information and trust.