Single Point of Failure

One vendor anchors three quarters of cross-institutional AI dependencies in regulated financial services.

73.4%
Pairs anchored by one vendor
62.2%
Institutions tied to that vendor
12 of 12
Sectors with top-vendor exposure

In a population of 543 regulated financial institutions, one canonical vendor mediates 73.4 percent of all observed cross-institutional AI dependencies. The same vendor anchors 62.2 percent of the population and reaches every one of the twelve sectors covered. The single point of failure is structural, not incidental.

Figure 1 · Single Point of Failure
perfect equality 0% 25% 50% 75% 100% CUMULATIVE COVERAGE 1 5 10 25 50 75 VENDORS RANKED BY REACH 73.4% at vendor 1 88.5% at vendor 3 98.3% at vendor 10 Three vendors out of seventy-five carry 88.5 percent of the perimeter. MAR®500.com

The cumulative coverage curve plots the share of cross-institutional pairs bridged as vendors are added one at a time, ranked by reach. The first vendor alone captures 73.4 percent. By the third vendor, coverage exceeds 88 percent. By the tenth, 98 percent. The remaining sixty-five vendors collectively account for less than two percent. The dashed diagonal shows what perfect equality would look like, where each vendor contributes one seventy-fifth of the total. The actual curve sits far above it. The concentration is not gentle; it is structural.

Source · Meridian substrate v13.1.0, May 2026 · Vendor labels anonymised per disclosure protocol Methodology · SSRN 6470098
66 countries · 12 sectors · 95,876 agents · 626,390 governance edges
Methodology grounded in The Coase Inversion in Agentic Governance, SSRN Working Paper 6470098. Substrate methodology in The Stationary Sea (Part 1) on Zenodo.