Abstract

This paper examines contemporary digital insecurity through a critical confrontation with Metcalfe’s Law. Metcalfe’s Law—which states that the value of a network grows proportionally to the square of the size of the network—has been cited as a key reason for the astronomical growth in user base and market values of digital companies. This paper proposes a corresponding tendency alongside Metcalfe’s Law, namely that, as digital networks grow in size, there is a tendency towards a corresponding growth in systemic risk. Building on theories of systemic risk, this paper identifies key factors intensifying systemic risk, including: increasing network size increases the complexity and ‘attack surface’ of a network; increasing network size increases the ‘target-rich’ nature of the network; and the ‘layered’ robustness of the internet infrastructure in cases of cyber-security failures can provide an undamaged carrier of digital systemic risk. This paper then proceeds to show how developments in generative AI threaten to massively amplify the risks of ever-expanding digital networks.