Law firm warns AI tools score borrowers and draft loan memos without formal sign-off
Outside GC, a firm that provides outside legal counsel to companies, warns that AI tools now score borrowers and write first drafts of loan approval memos, and that in many cases nobody at the bank formally signed off on that change. Banks must be able to explain loan decisions to regulators, borrowers and other lenders, the article said.
NoteThe firm's advice is to keep a map of where AI appears in lending and a record when a person overrides the tool.
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