Morgan Stanley Explains Why AI Disruption Will Unleash A Day Of Reckoning For Credit

By Vishwanath Tirupattur, head of North America fixed-income research at at Morgan Stanley

For much of 2025, markets debated whether AI was just hype or a technology that could transform the economy and markets in a meaningful way. We have entered 2026 with that debate firmly tilted against the 'hype' argument. 4Q earnings reports from the large hyperscalers show unambiguous, escalating commitments to AI and the infrastructure powering it, evidence that AI is real and transformative.