Document AI in Loan Production and Servicing: Identifying and Addressing the Legal and Regulatory Risks

Description

Banks and financial institutions are using AI to automate financial processes, decisionmaking, and services. Document AI is vital for organizations due to its potential to enhance efficiency, reduce operational costs, and improve customer experiences.

As the use of AI by banks and financial institutions increases in popularity, regulatory agencies are slowly adapting to changes in market practices stemming from AI developments. Although banks and investment firms using AI may benefit from increased efficiency and reduced transaction time and costs, among other benefits, they must consider potential legal and regulatory risks associated with each new instance of AI use.

Specific regulations addressing the use of AI software by banks and financial institutions have not yet been implemented. However, there are several regulatory frameworks, including industry-specific regulations, which may apply to the use of AI, depending on the context of its use. Additionally, several state jurisdictions are considering regulations that address algorithmic accountability and transparency.

Listen as our authoritative panel explores how AI has automated loan production by transforming document collection, enhancing accuracy and speed in underwriting, and improving various aspects of compliance. The panel will also address the increasing regulatory focus on issues unique to or heightened by AI, and the regulatory risks AI presents under current banking and consumer financial laws, regulations, and requirements.