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SSRNML & AI Methods

The AI Monoculture Paradox in Financial Markets

When traders adopt more precise but common AI signals, synchronized order flow can outweigh forecast gains, reducing collective profits despite higher individual precision, a paradox that taxes can help resolve.

Featured in No. 137 on 30 Oct 2026 · 2 days after release

Released
28 Oct 2026
First featured
No. 137 · 30 Oct 2026
Published in
Not yet, as far as Semantic Scholar knows
Fanfare
4 of 5
Identifier
SSRN 7664018
Authors
Jose Blanchet et al.

Citations and venue from Semantic Scholar (ODC-BY), refreshed weekly. Summary: Quant Letter (CC BY 4.0).

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