AI, Digital Platforms, and the New Systemic Risk

Abstract

This paper develops a rigorous framework for understanding systemic risk in AI, platform, and hybrid system governance by drawing from finance, complex systems theory, climate change, and cybersecurity. The authors argue that recent legislation including the EU's AI Act and Digital Services Act invoke systemic risk but rely on narrow or ambiguous characterisations. They contend the DSA better identifies systemic risks than the AI Act and identify four risk levels. The analysis shows that discrimination and hallucinations may escape current legal definitions despite their destabilising effects on institutions and fundamental rights.

Peer Review

Community peer review and discussion of this publication.