Banks are Eager to Tap into AI, but Must First Address the Perils

When it comes to artificial intelligence (AI) and banking, there’s a great promise – more business, less risk. But the intersection of AI and financial services can be fraught with peril, too. There’s the potential – and in some cases reality – for algorithms to reinforce social biases and disenfranchise minorities. This is especially relevant to lenders who use AI models to predict default risk. It’s a topic we’re likely to keep hearing about as it gains traction among consumers and policymakers. Consider a recent proposal by Democratic presidential candidate, Sen. Cory Booker, that would require big companies to test…...