The co-president of hedge fund Balyasny Asset Management pointed out on Tuesday that artificial intelligence will become the primary tail risk in 2026: on one hand, a decline in AI sector demand and spending adjustments by mega-cap tech companies due to monetization falling short of expectations could trigger unexpected downside risks;

On the other hand, AI development exceeding expectations could accelerate a wave of unemployment, leading to gaps in employee retraining and job transitions. He believes that both scenarios could trigger market volatility, but it is more likely that AI will continue its current pace of development.