Ever since its launch in November 2022, OpenAI’s text-generating artificial intelligence (AI) chatbot, ChatGPT, has been making headlines as a revolutionary technology. But with business use of AI growing all the time, what makes ChatGPT and other so-called generative AI tools such good news for commercial lending?
The story so far
Previous incarnations of AI have played a significant part in the increased automation of commercial lending processes . Machine-learning AI tools in particular are highly effective at extracting the right data from credit applications for digital processing – or making relatively simple lending decisions.
And because these tools are continually mining more data points and learning from human behavior, they become even more accurate and efficient over time.
In a matter of months, generative AI has rapidly gone several steps further. Rather than simply replicating manual processes and human decisions, tools like ChatGPT dig even deeper into available data to create their own textual or visual content.
Suddenly it’s possible to automatically produce an entire, persuasively written dissertation or a disturbingly lifelike deepfake image. That makes generative AI both astonishingly clever and a potentially dangerous way to cheat the system.
Valid concerns
So, while generative AI has the power to revolutionize financial services like commercial lending, it’s also, understandably, unsettling the industry.
First, it introduces major, more sophisticated opportunities for fraud. When generative AI can be used to create initially convincing – but ultimately phony – pictures of Donald Trump’s arrest, what’s to stop it faking documents to show a commercial lending applicant is more profitable and creditworthy than it is – or that it exists when it actually doesn’t?
Within financial inst ..
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