Should Artificial Intelligence technology be used to assess and grant loans, or should financial decisions remain in the hands of humans?

AI has great potential in analysing financial data and can be used to assess credit risk. However, the question is whether AI should have full control over credit decisions or whether these decisions should be made by humans who can take into account the broader social and individual context. Research shows that, on the one hand, AI in credit risk assessment can improve the accuracy of ratings and reduce the number of wrong financial decisions. On the other hand, AI-based credit decisions can lead to discrimination or the omission of relevant factors, such as the borrower's social situation. Therefore, the optimal solution is to combine AI as an advisor with decisions made by humans who take into account the social context. Therefore, the above question is about trusting algorithms in critical areas such as finance. Although AI can increase efficiency and reduce subjectivity in credit assessment, financial decisions have consequences that go beyond data analysis. The risk of automated errors, such as discrimination against certain social groups, is real. The key here is balance – AI can be a helpful tool in data analysis, but decisions must be made by people who consider the broader context and ethical aspects.

I have described the key issues of opportunities and threats to the development of artificial intelligence technology in my article below:

OPPORTUNITIES AND THREATS TO THE DEVELOPMENT OF ARTIFICIAL INTELLIGENCE APPLICATIONS AND THE NEED FOR NORMATIVE REGULATION OF THIS DEVELOPMENT

Article OPPORTUNITIES AND THREATS TO THE DEVELOPMENT OF ARTIFICIAL I...

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Dariusz Prokopowicz