By Isla Binnie
NEW YORK, March 4 (Reuters) – Uncertainty about artificial intelligence’s disruption of business models will complicate lenders’ decisions over how much risk to take on in the next two years, a senior Goldman Sachs executive said.
Those fears have spread across the financial system, from equity markets into credit markets and the capital-raising process for companies in that sector. Software stocks have been selling off for months, along with shares of asset managers who have bought and lent to them.
Mahesh Saireddy, co-head of the Goldman Sachs Capital Solutions Group, formed last year to finance large deals and lend to corporate clients, said the issue crossed sectors.
“It’s not just software, it’s other industries that are getting disrupted that will get a lot more attention,” he told the Bloomberg Invest conference in New York.
“For the next six, 12, 24 months, there’s going to be a lot of unknowns. So it is going to be a challenging time to underwrite things.”
(Reporting by Isla Binnie)
