AI Contagion in Social Networks
We study how artificial intelligence (AI) interacts with social communication networks to shape the stability of collective knowledge. Agents exchange information through a network while AI systems generate content and retrain on the aggregate informational environment they influence. This interaction creates a recursive feedback loop in which informational distortions diffuse through society and subsequently feed back into future AI outputs. Despite the high dimensionality of the environment, we show that the long-run dynamics admit a two-dimensional representation whose spectral radius completely characterizes the stability of AI-mediated information systems. We derive a sharp regulatory frontier identifying the minimum filtering required for stability and show how homophily and core-periphery network structures shape systemic informational risk.