WASHINGTON—The House Financial Services Committee has released the staff report from its Bipartisan Working Group on artificial intelligence (AI).
The report was created in response to concerns that AI will make potentially biased decisions, an issue that CUToday.info has previously documented as being a realistic risk, given that AI-based lending algorithms are based on loan decisions that have earlier been made by humans and which include certain biases.
No Absolution
The new report notes regulators have broadly stated the use of AI does not absolve entities from complying with anti-discrimination and other consumer protection laws, and suggests the use of machine learning models to analyze alternative data could help lenders more accurately assess risk and facilitate broader access to credit.