At Abu Dhabi Finance Week, Dmitry Balyasny — Managing Partner & CIO of Balyasny Asset Management (AUM: $31B) — identified artificial intelligence as the most significant tail risk for 2026.
He highlighted two opposite but equally disruptive scenarios:
🔹 Downside risk:
A sharp drop in AI demand, especially if hyperscalers scale back spending due to weaker-than-expected monetization.
🔹 Upside risk:
AI adoption accelerates faster than anticipated, potentially triggering job displacement before workers can retrain.
“Either of those scenarios could create instability, but the more likely outcome is steady growth,” Balyasny shared.
Balyasny also discussed the firm’s new Abu Dhabi office, noting the city’s rapid rise as a financial hub driven by capital inflows, global talent attraction, and its strong focus on technology and AI.
The hedge fund delivered a 2.5% gain in November and is up 15.3% year-to-date, according to Reuters.