Software companies face higher borrowing costs, tougher scrutiny as AI threatens businesses

By Matt Tracy and Saeed Azhar Feb 23 (Reuters) - Software companies are delaying debt deals as higher borrowing costs and tougher scrutiny from lenders weigh on the sector, at a time when mounting pressure from artificial intelligence threatens their business models, industry sources said. Software firms both in the U.S. and elsewhere have already paused or postponed fundraising efforts as ‌lenders and investors expect AI to upend the industry. These concerns have been underscored in loan markets, where ...