AI Impact on Software Won’t Trigger Wave of Downgrades, S&P Says

The impact of artificial intelligence on the software industry will not be severe enough to cause a sector wide wave of credit rating downgrades, S&P Global Ratings said.

AI has the potential to fundamentally change software companies, but will do so unevenly and be felt on a case-by-case basis, S&P said in a note published in response to questions it has received about the risks. That means it’s unlikely to underpin a widespread decline in credit quality, it said.

Rising concern among investors that the rapid development and adoption of AI will displace some software companies has seen debt issued ...