Artificial intelligence is rapidly transforming industries, but its growing influence is also creating new uncertainty for financial institutions. According to a senior executive at Goldman Sachs, the disruptive impact of AI on business models will make lending decisions significantly more complex over the next two years.
Mahesh Saireddy, co-head of the Capital Solutions Group at Goldman Sachs, said that lenders are increasingly cautious as they try to evaluate how AI could reshape entire sectors. The concern is not limited to technology companies. As AI-driven disruption spreads across industries, financial institutions must assess which business models will remain viable and which could quickly become obsolete.
These concerns are already visible in financial markets. Over the past months, software stocks have faced selling pressure, and asset managers with significant exposure to technology companies have also seen declining valuations. Investors and lenders alike are struggling to determine how resilient current companies will be in a landscape where AI can rapidly alter competitive advantages.
Saireddy noted that the uncertainty extends beyond software to multiple industries now facing AI-driven transformation. As a result, lenders may find it increasingly difficult to assess risk when financing companies or underwriting large deals.
For banks and private lenders, the next 6 to 24 months could prove particularly challenging. With AI accelerating the pace of technological change, traditional financial models used to evaluate long-term stability may no longer provide reliable guidance. Until the impact of AI becomes clearer, many institutions are expected to take a more cautious approach when allocating capital.
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