Financial institutions have rapidly adopted AI and machine learning algorithms to expand their operations — occasionally prematurely. If a new algorithm is introduced that does not support the institution’s objectives, it may be discarded after significant investment of time and resources. AI algorithms mimic human behavior to execute practical tasks. For instance, automotive loan providers […]
FAQ
Q: How are AI and machine learning utilized in the lending industry?
A: AI and machine learning are employed in the lending industry to streamline processes, evaluate creditworthiness, and detect fraudulent activities.
Conclusion
In conclusion, while AI and machine learning offer tremendous potential for growth in the lending sector, it is crucial for financial institutions to carefully align their models with their strategic goals to avoid wasted resources.
