Reveals the impact of algorithmic convergence on financial stability, indicating a need for diverse AI models.
The Mirror Trap: Why Algorithmic Convergence is the Next Systemic Threat The market is turning into a Digital Monoculture. This paper explains why everyone using the same "perfect" AI models is actually a disaster for financial stability. Key points inside: The Mirror Trap: How AI agents synchronize and trap the market in a feedback loop. Algorithmic Convergence: Why diversity in code is just as important as diversity in assets. The ADI Solution: A new way to measure and stop "model herding" before the next flash crash. This isn't just theory, it's a look at how the plumbing of the global economy is changing. Read it if you want to see where the system is actually fragile.
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Ayanat Ospan (2026) studied this question.
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