Ethical Considerations in Financial AI
Ethical Considerations in Financial AI This is the third installment in my series “Financial Leadership in the AI Era.” If you’re just joining, check out the first post on separating AI hype from reality and the second post on building your team’s AI literacy. When Algorithms Make Financial Decisions Three months into my role as a finance manager, my team faced our first significant ethical dilemma with AI implementation. We were evaluating a vendor’s AI solution for credit analysis that promised to increase approval rates while reducing default risk. The system showed impressive results in the demo, but when we dug deeper into how it made decisions, we discovered it was using postal codes as a significant factor—potentially serving as a proxy for demographic information that could lead to discriminatory outcomes. ...