Artificial Intelligence and its inherent bias may not be as judgmental as previously thought, at least in the case of home loans. It appears the use of algorithms for online mortgage lending can reduce discrimination against certain groups, including minorities, according to a recent study from the National Bureau of Economic Research. This could end up becoming the main tool in closing the racial wealth gap, especially as banks start using AI for lending decisions. The Breakdown You Need to Know: The study found that in person mortgage lenders typically reject minority applicants at a rate 6% higher than those with comparable economic backgrounds. However, when the application was online and involved an algorithm to make the decision, the acceptance and rejection rates were the same.
Dec-31-2019, 01:38:06 GMT