Noisy
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The world is being quietly rearranged by people who write very long documents.

arXiv · April 7, 2026
The title they went with Artificial Intelligence and Systemic Risk: A Unified Model of Performative Prediction, Algorithmic Herding, and Cognitive Dependency in Financial Markets Noisy translates that to

AI in finance makes market losses 18-54% worse, and regulators can now measure it

What happened
A new paper finds that as more financial firms use AI, the entire market becomes much riskier. This means that when things go wrong, market losses could be 18% to 54% larger than they would be without AI.
Why it matters
Financial regulators have worried about AI making markets more fragile, but they lacked hard numbers. This paper gives them a specific range: AI could make market downturns 18% to 54% worse. Rules about how much cash banks must keep in reserve (like Basel III) now have a concrete risk to measure against.
The signal
Watch for financial regulators to update their risk models or rules about how much cash banks must keep in reserve, specifically citing AI as a new source of market fragility.
If you insist
Read the original →