With the explosive buzz that artificial intelligence models have brought into the mainstream, AI, especially generative AI, has been almost impossible to ignore. But while ChatGPT and similar tools attract attention and drive excitement, banking companies have successfully deployed AI and machine learning models for years to propel growth, enhance efficiency, and gain a competitive edge on the lending side. That’s pretty exciting and has a track record.
AI presents many promising opportunities for banking institutions in lending, revolutionizing how financial institutions assess risk, underwrite loans and enhance customer experience.
Artificial intelligence augments the human element
AI is not meant to reduce human staff, nor is it meant to entirely supplant the human role in making credit decisions. No matter how sophisticated the technology, you will always need some layer of human touch.
The most effective applications are those that use AI as a supportive force: aiding in data analysis, helping to craft predictive modeling, and serving as a source of information for better decision making. This application is less glamorous than large language models and other generative AI, but operational optimization is one of the most tried and true applications for artificial intelligence. This optimization also ultimately unlocks new opportunities for upskilling and reskilling the institution’s workforce.