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AI and supply chain ties raise systemic risk links, Swiss Re and LSE say
A joint analysis of 91 Fortune-100 company filings found the links between risks rose 24% from 2019 to 2016 as AI and supply chains became key connection points.
Artificial intelligence and supply chain dependencies are creating new pathways for systemic stress by making risks more interconnected, according to a joint analysis by Swiss Re Institute and LSE.
The research, which analyzed filings from 91 Fortune-100 companies between 2019 and 2016, found a 24% increase in the links between risks, with AI and supply chains emerging as key points of connection.
Swiss Re Institute and LSE said the next systemic crisis could be shaped more by where the initial disruption occurs and how widely it spreads, rather than the size of the first shock. The analysis warned that reliance on common suppliers, technology platforms, and critical infrastructure can allow disruption in one area to cascade into economic sectors that appear unrelated.
The report also cited limits on governments to respond once a crisis hits, noting that high debt and constrained policy buffers can reduce resilience when problems begin.