ABSTRACT
When properly implemented, algorithmic and AI systems increase processing speed, reduce mistakes due to human error, and minimize labor costs while improving customer satisfaction rates. In the case of loan processing, AI was supposed to ensure that human error didn’t keep friends from gaining access to that constitutional promise of homeownership and the American Dream. As in other industries, AI is widely considered the great equalizer in the financial industry. AI can reduce humans’ subjective interpretation of data because machine learning algorithms learn to consider only the variables that improve their predictive accuracy. Some early evidence showed that algorithms could improve decision-making, causing it to become fairer in the process. Like technology in general, AI is impacted by the cultural biases of those that program or design its outcome. Computers work objectively, always prizing accuracy over anything else unless programmed to do so.
