Algorithms and bias: What lenders need to know
Much of the software now revolutionising the financial services industry depends on algorithms that apply artificial intelligence (AI) – and increasingly, machine learning – to automate everything from simple, rote tasks to activities requiring sophisticated judgment.
Explains (from a US perspective) how the development of machine learning and algorithms has left financial services at risk of exacerbating biases. Using the example of lending, the article explains how algorithms incorporate biases into our systems, and what organisations can do to limit risk, particularly from a legal perspective.
