Private Debt Investor highlights the gradual adoption of AI in private credit, where most firms are only beginning to explore its potential, typically in portfolio management and reporting. Liquidity Group stands out by utilizing AI to analyze tech companies’ financials, allowing it to make fast, data-driven lending decisions with high accuracy. While many private credit firms lack advanced technology, Liquidity’s approach enables rapid underwriting and a zero percent loss ratio for investors. The article also discusses broader industry challenges, such as data limitations, and anticipates AI’s growing role in transforming investment processes and portfolio diversification in private credit.
