When everyone uses AI to study the same indicators and figures out how the prices move with those indicators they all start investing at the same time and the prices move together. AI silently gets everyone on the same page.
next stage - a single AI which computes the "correct" price that everyone else agrees on, and instantly reprice all financial instruments without trading them, thus not paying transaction costs
I hate to make the worn out AI to RNG comparison, but this kind of simultaneous "collusion" is really like assuming that everyone is using the same RNG seed to make their calls.