AI lending bias could affect loan eligibility

Economic Times - Tech · technology

ONDC is exploring the potential for artificial intelligence to introduce bias in loan eligibility assessments. This concern arises as AI algorithms are increasingly used to evaluate loan applications, raising questions about fairness and equal access to credit. The development highlights a critical challenge in leveraging AI for financial services, where algorithmic decisions could inadvertently disadvantage certain groups of borrowers based on factors like their PIN code.