Research & Publications Office to host seminar on Financial Stability in the Age of Artificial Intelligence
Seminar by Dr. Kartik Anand, Research Economist at Deutsche Bundesbank
9 March 2026, Bengaluru: The Office of Research and Publications (R&P) will host a research seminar on ‘Ex Machina: Financial Stability in the Age of Artificial Intelligence’, to be led by Dr. Kartik Anand, Research Economist at the Deutsche Bundesbank, on 9 March 2026 at 12.00 PM in Classroom P-22.
Abstract:
Does artificial intelligence (AI) pose a threat to financial stability? The study examines AI investor behavior, specifically Q-learning and Large Language Model (LLM) investors, in a mutual fund redemption setting characterized by economic and strategic uncertainty. Different AI architectures generate systematically different outcomes. Q-learning investors coordinate effectively under default risk and exhibit excessive redemption, amplifying fragility. LLM investors internalize equilibrium structure but display belief heterogeneity, weakening coordination and predictability. The findings establish AI architecture as a first-order determinant of financial stability.
Speaker Profile:
Dr. Kartik Anand is a Senior Economist in the Research Centre at the Deutsche Bundesbank. He holds a PhD in Applied Mathematics from the University of London and a BA in Mathematics from Johns Hopkins University. His research spans artificial intelligence, cybersecurity, financial intermediation, and political economy. His research work has been published in the Review of Financial Studies, Review of Finance, Journal of Money, Credit and Banking, Journal of Banking and Finance, and Journal of Economic Behavior and Organization, among others.
Webpage Link: https://www.bundesbank.de/en/kartik-anand
Research & Publications Office to host seminar on Financial Stability in the Age of Artificial Intelligence
Seminar by Dr. Kartik Anand, Research Economist at Deutsche Bundesbank
9 March 2026, Bengaluru: The Office of Research and Publications (R&P) will host a research seminar on ‘Ex Machina: Financial Stability in the Age of Artificial Intelligence’, to be led by Dr. Kartik Anand, Research Economist at the Deutsche Bundesbank, on 9 March 2026 at 12.00 PM in Classroom P-22.
Abstract:
Does artificial intelligence (AI) pose a threat to financial stability? The study examines AI investor behavior, specifically Q-learning and Large Language Model (LLM) investors, in a mutual fund redemption setting characterized by economic and strategic uncertainty. Different AI architectures generate systematically different outcomes. Q-learning investors coordinate effectively under default risk and exhibit excessive redemption, amplifying fragility. LLM investors internalize equilibrium structure but display belief heterogeneity, weakening coordination and predictability. The findings establish AI architecture as a first-order determinant of financial stability.
Speaker Profile:
Dr. Kartik Anand is a Senior Economist in the Research Centre at the Deutsche Bundesbank. He holds a PhD in Applied Mathematics from the University of London and a BA in Mathematics from Johns Hopkins University. His research spans artificial intelligence, cybersecurity, financial intermediation, and political economy. His research work has been published in the Review of Financial Studies, Review of Finance, Journal of Money, Credit and Banking, Journal of Banking and Finance, and Journal of Economic Behavior and Organization, among others.
Webpage Link: https://www.bundesbank.de/en/kartik-anand
