Bias is preventable
Not surprisingly, consumers continue to be concerned about bias. Indeed, Genpact research found that 78 percent of consumers say it's important that companies take active measures to prevent it, and 67 percent are apprehensive about potential discrimination when robots make decisions.
And the reality is that an AI algorithm is only as good as the data it uses, and teams' unconscious biases can creep in when there's little diversity among their members.
But banks can help mitigate this issue by making sure to consider the necessary oversight when programming the solution. They can develop a series of rules to prevent the machine from making the same mistakes a human would make, like issuing a loan inappropriately or denying mortgages to people within a certain demographic segment.
And this is good news for banks and customers alike. For example, in the past, a loan officer might overlook creditworthiness if he or she knew the customer. But when trained effectively, AI can't ignore such binary decisions.
There's little denying AI's benefits to both banks and their customers. To make sure the technology can deliver its expected value, banks must develop an ethical framework of transparency and education to gain and retain their customers' trust.
This article was authored by Mark Sullivan, Global Business Leader, Banking & Capital Markets, Genpact and was first published in Money Control.