Don’t miss out on news you won’t find anywhere else — get The Memo US and The Memo Europe in your inbox every two weeks.

Check out Part One, where we explore the trend of leveraged credits teaming up with AI businesses and the treatment of AI-generated products in debt underwriting and restructuring scenarios.

If you’ve ever watched a dystopian sci-fi film or read a Ray Bradbury story about the reach of artificial intelligence (The Veldt is an excellent starting point), you might be wondering if humanity will soon be headed in that direction.

To be sure, the AI technologies we currently use are still relatively primitive compared with some of the scenarios that fiction writers can generate. But as AI becomes increasingly embedded in the workflows of financial sponsors and borrowers, concerns are emerging over its safety in the absence of a federal regulatory framework.

In Part Two of this series, we’ll unpack some of the compliance issues created by AI technologies and how the government and leveraged credits are tackling them.