MIT AI Risk Repository · Risk Sub-Category · 72.03.02

Impact on Financial Stability

Category: Accident Risks

Description

"The integration of general-purpose AI into high-frequency trading, market-making, or systemic risk management could exacerbate systemic risk by exhibiting unexpected behavioral patterns during market stress. Moreover, the concentration of a few homogeneous foundation models across financial institutions may foster correlated decision-making and herd-following behaviors. The widespread adoption of AI agents could also amplify volatility through emergent phenomena from multi-agent interactions.23 All of these could precipitate a cascading global-scale financial system instability, with potentia

From Frontier AI Risk Management Framework (v1.0) (Tse2025), as extracted by the MIT AI Risk Repository (CC BY 4.0).

Classification

Causal entity
Other

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.

How other frameworks describe this risk

Other entries from Tse2025