Systemic Risk, Feedback Loops, and Cascading Failures in AI Systems
Systemic risk, feedback loops, and cascading failures in AI systems examine how local errors, concentrated dependencies, tightly coupled workflows, or automated interactions can propagate across larger sociotechnical systems. This article explains systemic risk, complex adaptive systems, nonlinear response, tight coupling, feedback loops, cascading failures, dependency concentration, platform fragility, organizational propagation, critical infrastructure exposure, market-system instability, AI agents, runtime monitoring, early-warning indicators, resilience engineering, adaptive governance, and system-level risk management. It shows why AI failures cannot be understood through model accuracy alone when systems are embedded in infrastructure, institutions, markets, platforms, and automated workflows. The article also introduces dependency networks, cascade thresholds, feedback intensity, concentration risk, systemic-risk scoring, and resilience buffers, for cascade simulation, dependency-network diagnostics, feedback-loop analysis, and systemic-risk scoring.









