UBS warns AI could push private credit default rates to 13%, with 35% of the $1.7T market exposed to AI-driven software disruption.

AI-driven automation fears shake private credit markets as Anthropic's new tools threaten software companies, raising default risk concerns among lenders.

Leading AI unicorn founders and venture investors gathered at Web Summit Qatar dismissed fears of software industry collapse following a historic $1 trillion sell-off in tech stocks. While acknowledging that AI valuations appear stretched, executives from companies like Glean and Miro argued that software will adapt and integrate AI rather than be replaced, predicting a market normalization within two years.

Anthropic's new AI workplace assistant Cowork sparks market panic as software stocks plummet. Thomson Reuters fell 15.83%, LegalZoom dropped nearly 20%.