Uncertainty surrounding artificial intelligence's disruption of business models will complicate lenders' decisions on risk-taking over the next two years, according to a senior Goldman Sachs executive.
This concern has permeated the financial system, affecting equity and credit markets, as well as capital raising for tech companies. Software stocks and asset managers who have invested in or lent to them have seen significant sell-offs.
Mahesh Saireddy, co-head of Goldman Sachs Capital Solutions Group, stated the issue extends beyond software to other disrupted industries. He anticipates a challenging period for underwriting due to widespread unknowns in the coming six to twenty-four months.