We study the structure of accretion disks around supermassive black holes in the radial range $30sim 100$ gravitational radii, using a three dimensional radiation magneto-hydrodynamic simulation. For typical conditions in this region of Active Galactic Nuclei (AGN), the Rosseland mean opacity is expected to be larger than the electron scattering value. We show that the iron opacity bump causes the disk to be convective unstable. Turbulence generated by convection puffs up the disk due to additional turbulent pressure support and enhances the local angular momentum transport. This also results in strong fluctuations in surface density and heating of the disk. The opacity drops with increasing temperature and convection is suppressed. The disk cools down and the whole process repeats again. This causes strong oscillations of the disk scale height and luminosity variations by more than a factor of $approx 3-6$ over a few years timescale. Since the iron opacity bump will move to different locations of the disk for black holes with different masses and accretion rates, we suggest that this is a physical mechanism that can explain the variability of AGN with a wide range of amplitudes over a time scale of years to decades.
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