Hedge fund managing partner Dmitry Balyasny taps AI as largest tail risk for 2026

ABU DHABI, Dec 9 (Reuters) - Hedge fund Balyasny Asset Management's managing partner said on Tuesday that the largest tail risk for the year ahead is if artificial intelligence surprises on the upside or the downside.

Dmitry Balyasny, managing partner and the firm's chief investment officer, said if there was a fall-off in demand and AI companies --- especially so-called hyper-scalers -- changed their spending plans because they did not achieve the monetization they needed, this would be a surprise to the downside.

Also, an outside risk the hedge fund manager was watching for was if the AI industry took off faster than expected, causing job losses before employees were able to retrain for other opportunities, he said during a fireside chat at Abu Dhabi Finance Week.

"Either of those scenarios could create some instability, but I think the more likely outcome is that it continues to grow the way that it has," he said.

Balyasny Asset Management manages $31 billion.