Artificial intelligence is no longer just creating investment opportunities; it is reshaping how private credit lenders assess risk.
According to PitchBook analysts, AI disruption has become one of the defining themes in leveraged finance this year, prompting lenders to rethink long-standing assumptions about software companies while shifting capital toward industries viewed as more insulated from rapid technological change.
The result is a growing divide between borrowers perceived as AI winners and those seen as increasingly vulnerable.
“AI disruption seems to be still lingering around and probably will be for the next couple of quarters at the least,” Kenny Tang, Senior Director, Head of U.S. Credit Research at PitchBook, said during a market outlook presentation on Thursday.
The impact is already showing up in loan issuance. Software, one of the private credit market’s favorite sectors, has seen a dramatic collapse in lender appetite. Sill said software accounted for nearly 30% of new broadly syndicated loan issuance at the end of 2025. That figure has fallen to roughly 9% so far in 2026 as investors question how quickly AI could disrupt existing business models.
