UBS Asset Management warns AI investment boom creates ‘debt network’ of underestimated risk

TREE NEWS reports: UBS Asset Management’s Europe head Sonja Laud said the AI investment boom is creating an interconnected risk network that markets are significantly underestimating. Laud, who also serves as co-head of investments and real assets, said most investors do not understand how much true AI exposure they carry across public markets, private markets and equities through a “debt network.” She warned that returns may fall short of expectations as the story shifts from equities to balance sheets.