The Use Of Artificial Intelligence In Bank Lending Decisions: Bias,Fairness, And Regulation
- IJLLR Journal
- Mar 9
- 1 min read
Vashita Ahuja, OP Jindal Global University
ABSTRACT:
This paper will provide an overview of how AI is used in bank lending decisions and how it has benefited the sector.
There would be discussion on how AI can have a bias such as algorithmic bias and also violate several anti-discrimination laws in the same way. We will be looking at various case studies focusing on India and the US and how there have been instances where the existing legal and ethical standards are infringed (focus on bias in microfinance lending- Zest Money/Rupifi; Apple card gender bias controversy-Goldman Sachs in US).We will also look into the specific regulatory norms that have been proposed in United State and European Union to deal with this along with analyzing the case studies with them. The paper will also explain what these countries are doing to help find solutions in this aspect and how the regulatory bodies in these countries have addressed these issues.