Natural use of artificial intelligence – Regulatory review on use of AI in lending transactions
– Aditya Iyer | Manager – Legal – finserv@vinodkothari.com
I. Introduction
Lenders appear to be increasingly leveraging Artificial Intelligence (‘AI’) to optimize their lending functions (e.g., to reduce the turnaround time, reduce the margin of error, for automating certain tasks, etc.). ‘AI’ here is being used to denote “a machine-based system that, for explicit or implicit objectives, infers, from the input it receives, how to generate outputs such as predictions, content, recommendations, or decisions that can influence physical or virtual environments. Different AI systems vary in their levels of autonomy and adaptiveness after deployment[1]”
