This piece is in partnership with SolasAI in support of our recent joint webinar AI In Lending Webinar: Competitive Advantage & Regulatory Compliance on Wednesday, Sept. 20. For more information or to watch the webinar click here.
While compliance may seem like a burden in the fast-paced world of Generative AI, it can also provide a competitive advantage as consumers and regulators become more discerning.
In the fast-paced world of AI adoption, companies must view compliance as a strategic imperative rather than an obligation. By proactively adhering to legal and ethical standards, businesses can protect themselves against legal repercussions, build trust with stakeholders, mitigate risks, and even gain a competitive edge.
During a recent joint webinar held by Capco and SolasAI titled AI In Lending: Competitive Advantage and Compliance, this was the central topic. The discussion dove into the transformative impact of AI, revolutionizing decision-making across industries, and leaving a permanent mark on operational strategies. Within the financial sector, including banking and lending, the key to gaining competitive advantage lies in harnessing AI's power while maintaining human expertise. Embracing the 'human-in-the-loop' approach, or ensuring humans have the tools and insight to make decisions and manage AI, ensures a harmonious blend of AI-generated decisions with human understanding and support.
It is worth noting, the discussion also shed light on the shifting regulatory landscape for AI in lending, with prominent U.S. regulators like the Consumer Financial Protection Bureau (CFPB) and Office of the Comptroller of Currency (OCC) signaling increased scrutiny. The key topics discussed were:
During the discussion, panelists agreed that compliance can be a selling point by differentiating an AI creator in a crowded marketplace, especially as consumers and regulators of AI become more discerning. Panelists Josh Siegel, who is a Partner at Capco, and Larry Bradley, who is a co-founder and CEO at SolasAI, also shared how their partnership has accelerated the time to reach compliance for unbiased, production-grade AI models regardless of scale. This allows financial services organizations to better match the speed of innovation in Generative AI while ensuring fair lending compliance matches regulatory expectations.
