Ubs analyst warns AI investment boom risks are hidden in corporate debt structure

Sonja Laud, who serves as co-head of investments and real assets at UBS Asset Management, has cautioned that the current surge in artificial intelligence investments is fundamentally shifting from being an equity-driven narrative to one dominated by debt structures. Laud indicated in an interview with Bloomberg Television that this shift has created a complex, interconnected web of risk spanning both public and private debt, as well as equity. She expressed concern that markets are currently underestimating the true level of this risk. Specifically, Laud noted that the investment community might not realize the anticipated returns on these AI-related investments due to the pervasive nature of this debt web.