AI Risks Disrupt Private Lending Industry

Published on 6.12.25

  The increasing use of artificial intelligence (AI) in the private credit market has raised significant concerns among industry experts, who warn that these risks are emerging faster than expected. According to Ellen Schneider, a veteran of the industry, AI poses a major threat to the stability of the private credit market if not properly managed. Experts advise businesses to exercise caution when using public AI models, as they can be vulnerable to data breaches and unauthorized access if sensitive information is fed into them directly. Private or secure solutions should be prioritized whenever possible to mitigate these risks. Regular review of data retention and privacy policies for AI services is crucial to ensure compliance with regulations and prevent unauthorized access, noted Dani Burger. Jill R. Shah emphasized the need for lenders to be aware of these risks and take proactive steps to address them. The stability of the private credit market hangs in the balance, making it essential for businesses to prioritize secure AI solutions and monitor their data retention policies closely.

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