Private Credit’s AI Woes Not Systemic, Brookfield’s Flatt Says

The risk of AI disruption upending private credit poses little threat to the wider financial system or the global economy, according to Brookfield Corp.’s Chief Executive Officer Bruce Flatt.

While markets have been roiled by concerns about private credit exposure to software businesses that could be vulnerable to new technology, fear that could spread to a wider financial crisis are overblown, Flatt said in a Bloomberg Television interview Wednesday.

“Private credit is very small and software loans are even smaller,” he said. “In a global situation the credit markets are very large and this is not a systemic ...