The Hidden AI Risk in Portfolios

A $75 billion asset manager’s CEO warns AI is now the dominant systemic risk in global markets, surpassing traditional economic threats like inflation or geopolitical instability. The warning comes from a March 2026 interview where the executive highlighted AI’s unpredictable market disruptions, including rapid asset revaluation and volatility in tech-dependent sectors. Private credit emerges as a potential hedge, with the firm actively scanning for AI-driven inefficiencies to exploit, particularly in undervalued or mispriced debt instruments. The CEO’s focus extends beyond public equities, emphasizing AI’s ripple effects across private markets, where valuation models may lag behind the technology’s disruptive pace. Opportunities lie in identifying "cracks" where AI adoption outpaces regulatory or institutional adaptation, creating temporary arbitrage windows for agile investors.