Since its launch in November 2022, OpenAI’s text-generating artificial intelligence (AI) ChatGPT chatbot has been making headlines as an innovative technology. With AI playing an increasingly important role in business, it’s easy to understand why ChatGPT and other generative AI tools are invaluable to commercial lenders.
These AI tools simplify complicated data extraction in credit applications and make lending decisions more quickly and accurately. In addition, they are continuously learning from the behavior of humans and the data they analyze, and thus become more intelligent as time passes. Generative AI pushes the envelope to generate custom content such as research papers or lifelike images, all without any human intervention.
While the groundbreaking power of generative AI is exciting, it can be quite worrisome. There are more chances for fraud if AI can forge documents that make businesses appear more profitable than they are, or if they seem to exist when they don’t. Not surprisingly, many major banks on Wall Street and beyond have prohibited ChatGPT’s internal use while they evaluate the potential hazards associated with data privacy, security, and access to systems.
It is easy to see why AI has become a source of anxiety, though employers should not overlook the significant advantages it can have for commercial lending. AI can significantly improve a variety of procedures related to financial services, from quickly processing large amounts of data to making unbiased, yet well-informed decisions.
Despite these advantages, it is important to remember that while AI removes monotonous tasks and can provide useful insights when handling finances, it cannot replace the emotional intelligence of humans that is so essential to successful lending. This type of intelligence often guides lenders when faced with inconclusive financial data, providing them with the intuition required to make successful deals.
Generative AI tools such as ChatGPT offer incredible opportunities to improve commercial lending, and organizations should assess the potential risks involved and develop solutions to ensure data privacy and security. If done successfully, these tools can work harmoniously alongside human resources to mark a transformational change in financial services.
