00:00AI is going to create tons of winners and losers.
00:03I mean, the technology change at the turn of the century
00:06when I was starting my career with what happened with the Internet
00:09and then with fracking, you know, 10 years ago, 10, 15 years ago,
00:13created a lot of winners and losers.
00:14This is going to be much bigger than either of those cycles.
00:16Where do you think the greatest default risk is going to lay
00:19as we go through this cycle?
00:20SaaS is obvious.
00:21Right.
00:22There are other sectors like healthcare IT, business services,
00:26businesses, private equities piled into various insurance broker-type strategies.
00:33I don't know.
00:35It's hard to know yet what the full impact is,
00:37and we're not in the it's going to kill tons of jobs
00:40or it's going to create tons of jobs.
00:41I say we're somewhere more in the middle.
00:43We're net hiring because of AI.
00:46But if you have a situation where it does go more towards the job destruction tail
00:51in destroying white-collar jobs, that's going to be a U.S. economy and GDP problem.
00:55And then you have a real macro cycle.
00:57How have your hiring plans changed since you started to incorporate more AI?
01:01I'm assuming you're not getting rid of –
01:03I'm assuming you never had any low-value human capital, shall we say.
01:07We value everyone at diameter equally.
01:12And we've started hiring people out of college.
01:14We never hired college grads before.
01:15We always used to let them do a training program somewhere else
01:18because that was a tax on us to train them.
01:20But now the AI nativity of the college grads is so powerful
01:26that we've hired a number of them this year,
01:28and I think that number is only going to grow
01:30relative to somebody who's been in the business 10, 15, 20 years
01:33who have the knowledge of credit, but they haven't grown up in AI.
01:35So their ability to come in and help implement,
01:37especially if they're interested in finance and computer science at the same time,
01:41has been a really interesting and novel thing for us.
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