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How AI Is Disrupting LevFin, Part One — When Intangible Assets Become Tangibly Risky

Member Marguerite McConihe was quoted by 9fin in an article about the opportunities and risks associated with the use of AI technologies in leveraged finance. The article notes that while LevFin bankers have largely benefitted from AI, questions are emerging around credit risk, cyber security vulnerabilities, and treating AI-generated assets or IP as debt collateral.

“If you have AI software that’s being hosted in a place that’s a geographically high-risk area, then it may have an impact based on the risks associated with data leakage and cyber security in that area,” Margaret says. “If you’re using a platform that is scraping and providing data that can’t be sourced, you’re also creating risk for yourself.”

Source

9fin