AI impact on the software industry raises concerns about related personal credit risks.

As AI-driven tools begin to put pressure on software companies - which are a key borrowing group for private credit institutions - the private credit market is facing new uncertainties. Last week, after the artificial intelligence company Anthropic released a new generation of AI tools, the software industry once again came under pressure, leading to a sell-off of stocks of software data service providers. Investors are concerned that AI may disrupt the business models of borrowing enterprises, squeeze cash flow, and ultimately increase default risks, causing the share prices of asset management companies with a significant amount of private credit business to drop significantly last week. Market observers say that this round of volatility highlights the growing anxiety in the private credit industry. The industry needs to address the impact of AI on the software industry, as the software industry relies heavily on acquisition financing supported by opaque and illiquid loans.