AI driving credit risk, may threaten jobs and tax revenues in developed economies: Fitch
New Delhi, July 1 -- Artificial intelligence (AI) and heavy digital infrastructure spending are emerging as key global credit risks, with AI expected to boost efficiency but also threaten jobs and tax revenues, particularly in developed economies, says Fitch Ratings.
According to Fitch, investors and official-sector participants across Hong Kong, Seoul, Singapore and Tokyo have centred their discussions on AI disruption, the rapid growth of private credit and sovereign risk.
Investors are keeping a close watch on execution risks, elevated capex, pricing pressure and potential contagion from equity markets to credit markets, with bespoke hyperscaler contracts and tighter funding conditions increasing risks.
Fitch said private credit, on...
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