TROWT. Rowe Price Group, Inc.
AI adoption · Q1 2026 earnings call
FinancialsExploring
9
extracted from this call
3 / 5
operational, no hard numbers
Not disclosed
no breakout in this call
AI was discussed on this call primarily as an external risk factor — specifically, AI disruption risk to software credit portfolios held by OHA (T. Rowe Price's alternative credit subsidiary). Glenn August (OHA CEO) addressed AI disruption as one of several market headwinds affecting private credit markets, particularly software-focused loans, and described OHA's underwriting approach as a mitigant. Rob Sharps briefly referenced AI infrastructure build-out as a market dynamic benefiting certain equity sectors. There was no discussion of T. Rowe Price or OHA using AI internally as a productivity tool, nor any AI-as-product revenue line.
Beneficiary
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26
stage: exploring · max spec: 3
0
no quantified disclosure
35
1 scope
internal_use
9 AI mentions from this call.
Extracted verbatim from the TROW Q1 2026 earnings call transcript. Speaker, section, and specificity tier surfaced for each mention.
- T3Prepared remarks· Other· Customer demand signal
“At the start of this year, markets were [indiscernible] by rapid AI advancements that resulted in concerns at disruption risk among the incumbent software providers. These concerns were most acute in the syndicate and private loan markets, which have financed a number of large software deals in recent years. This, in turn, created a flurry of negative headlines and elevated redemption activity in non-traded [ BDCs ].”
— Glenn August, TROW earnings call - T3Q&A· Other· Customer demand signalcould you discuss what OHA's exposure is to software and some of this AI disruption that's clearly an overhang here?
“we've been doing software credit for 40 years. We have $40 billion track record over a 9% unlevered return. And I think there's real differentiation in the credit space in software. We've avoided ARR loans, we've avoided technology risk. Excuse me, we focus on [indiscernible] mission-critical software and contractual recurring revenue models. And so we feel very well positioned.”
— Glenn August, TROW earnings call - T3Q&A· Other· Customer demand signalhow you integrate the assessment of AI risk into your underwriting process?
“if you look at software equities, they've gone down dramatically. If you look [indiscernible] EM stock, which went down $80 in a 6-week period because of an [indiscernible] threat to its [ cobalt ] business. So -- so to our perspective, AI disruption is a major, major theme”
— Glenn August, TROW earnings call - T3Q&A· Other· Internal usehow you integrate the assessment of AI risk into your underwriting process?
“We have AI risk management -- risk management tools in terms of rating each one of our companies. And to your point, it's not just software. It's what happens in a bunch of the services sectors like accounting, other areas. And we continuously we underwrite”
— Glenn August, TROW earnings call - T3Q&A· Other· Customer demand signalcould you give us that number [software exposure]?
“We are basically in line with the market. The market has been in the neighborhood of 15% to 20% allocation to software credit.”
— Glenn August, TROW earnings call - T2Q&A· CEO· Customer demand signalwhat is the institutional pipeline shaping up to be?
“the equity markets, in particular, feel like there is a new dynamic where you have return from parts of the market away from the hyperscalers where energy has performed well, where sectors that are exposed to the AI infrastructure build-out, whether it's semiconductors in technology, or areas like power, or kind of certain componentry have really, really benefited from the accelerating CapEx of the hyperscalers and of the AI-oriented firms.”
— Robert Sharps, TROW earnings call - T2Q&A· Other· Customer demand signalAI is not new. The disruption in the public market sort of concern about it is far more elevated than it had been. But I'd be interested in hearing about how you integrate the assessment of AI risk into your underwriting process?
“AI disruption is a major, major theme, and it didn't just happen overnight. Although it seemed like in February with [indiscernible] issuing its new [indiscernible] version, there seem to be a lot more attention to it.”
— Glenn August, TROW earnings call - T2Prepared remarks· Other· Customer demand signal
“we believe the challenges in the credit markets, including AI risk are idiosyncratic, not systemic.”
— Glenn August, TROW earnings call - T1Prepared remarks· Other· Customer demand signal
“while the impact of AI disruption will create winners and losers, these dynamics will play out over time.”
— Glenn August, TROW earnings call
What management wouldn’t quantify.
Analyst questions where management declined to share a specific number. The pattern of refusals is often as informative as the disclosures.
- OHA disclosed its software credit allocation is 'in line with the market' at approximately 15-20% but did not provide a precise dollar figure for software or AI-exposed credit exposure despite a direct analyst question from Brennan Hawken (BMO).
- Management mentioned 'AI risk management tools' for rating portfolio companies but provided no detail on what these tools are, who built them, or how they function.
- No discussion of T. Rowe Price or OHA using AI internally for investment research, operations, or client service.
- No AI revenue attribution or AI product revenue disclosed.
- No capex or opex figures related to AI investment disclosed.
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