Morgan Stanley, Wells not sold on AI for credit scoring

Risk USA: Lenders warn on AI model risks and use of non-traditional data

Two banks grappling with the application of artificial intelligence to credit scoring say the techniques will not deliver a big jump in performance when compared to established models.

Machine learning, a subset of artificial intelligence in which computers sift through enormous datasets with varying degrees of freedom, has captured the interest of credit risk managers who hope to automate or speed up screening and decision-making. A survey from the Institute of International Finance last year