Macquarie steps up software risk stress testing as AI fears emerge

Macquarie says it is subjecting its growing exposure to software companies to more stringent stress tests as increasing uncertainty about the impact of artificial intelligence on technology companies hurts valuations and impacts some of the world’s largest private equity and private credit investors.

Shemara Wikramanayake, managing director of the asset management and banking giant, said a quarter of Macquarie’s balance sheet investments and private credit loans were in software-as-a-service companies. This is a sector that has been sold heavily as the market fears that increasingly complex AI platforms will reduce revenue growth and therefore returns.

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