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Systemic risk

As explained in Introduction to Generative AI, Second Edition

Systemic risk is the possibility that interconnected properties or widespread deployment of an AI system produce broad harms beyond individual errors or incidents.

Systemic risk is the possibility that AI systems create broad harms through large-scale data use, opaque processes, interconnected stages, or widespread deployment—not merely through individual mistakes. In AI, risks can accumulate across collection, curation, training, and outputs. section 3.18

Common systemic risks include:

  • Large-scale inference and opaque profiling that reduce user control. section 3.18
  • Bias introduced or amplified by undocumented, unbalanced, or insufficiently reviewed datasets. section 3.18
  • Privacy loss or biased content emerging from model outputs. section 3.18

Managing systemic risk requires oversight across the full data and AI lifecycle rather than relying only on individual consent or organizational compliance. Practical controls include data inventories, documentation, red teaming, and AI-specific privacy impact assessments. section 3.18

How Introduction to Generative AI, Second Edition covers it

How deep it goes
Traces risks across collection, curation, training, and outputs, then identifies governance mechanisms without implementation detail.
Examples
Uses scraped data, undocumented datasets, internal representations, private outputs, model cards, and red teaming as concrete examples.
What you can do after
Operate/configure lifecycle governance using inventories, documentation standards, red teaming, and privacy impact assessments.
How it connects
Connects systemic risk with data governance, privacy, bias, profiling, red teaming, model cards, and privacy impact assessments.

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This explainer was generated by Manning's knowledge graph from the text of Introduction to Generative AI, Second Edition. The section links point to the parts of the book it draws on.