AI Disruption May Complicate Lending Decisions, Goldman Sachs Executive Warns

Artificial intelligence (AI) is expected to create new challenges for lenders as it continues to reshape business models in the coming years, according to a senior executive from Goldman Sachs Group Inc.

Speaking on March 4 in New York, the executive said the uncertainty surrounding how AI will transform industries may make it harder for lenders to determine how much risk they should take over the next two years. Because AI can quickly change how companies operate and compete, financial institutions may struggle to accurately evaluate long-term business stability.

Concerns about AI’s impact are already spreading throughout the financial system. The uncertainty has affected not only equity markets but also credit markets and the process companies use to raise capital. In recent months, software company stocks have declined, along with shares of asset management firms that have invested in or provided loans to these businesses.

Analysts believe that as AI continues to evolve, lenders and investors will need to reassess how they evaluate risk in industries that could be heavily affected by rapid technological changes.