AI disruption will challenge lending decisions in coming years, Goldman exec says

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)

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