In popular culture, artificial intelligence (AI) is often depicted as a futuristic technology with the potential to revolutionize our world. From the self-aware robots of Westworld to the lovable Wall-E, AI has captured our imagination.

With the rise of smart device-enabled digital assistants such as Siri, Google Assistant and Alexa, as well as the broadening adoption of AI tools like ChatGPT, AI is no longer just a thing of science fiction — it is already being widely used in many industries, including consumer credit scoring. 

Credit scoring is the process of determining a person’s creditworthiness based on their financial history and other factors. Traditionally, this process has been done manually by human analysts and credit underwriters. However, with the advent of AI and machine learning, credit scoring can now be done more efficiently and objectively.   

One of the key benefits of using AI in credit scoring is efficiency. Machine learning algorithms can analyze vast amounts of data quickly and accurately. AI in credit scoring is also objective. Human analysts can be biased, whether consciously or unconsciously. However, machine learning algorithms are designed to reduce these biases and make decisions based primarily on data.    

Finally, using AI in credit scoring promotes inclusivity. Traditional credit scoring methods often rely on a person’s financial history, which can disadvantage people who are new to credit or have limited credit histories.

As AI technology continues to advance, we can expect to see even more innovative uses in the field of consumer credit and beyond.   

Leackstat 2023