As artificial intelligence continues to advance, concerns are mounting about its potential to disrupt the software industry, which constitutes a significant portion of the U.S. credit market. According to Morgan Stanley, software accounts for approximately 16% of the $1.5 trillion U.S. loan market, raising alarms about the stability of this sector amidst rapid technological changes. The report highlights that a staggering 50% of software loans are rated “B- or lower,” indicating a higher risk of default.