As artificial intelligence (AI) increasingly plays a role in the auto lending industry, companies must take steps to ensure their AI-powered systems comply with anti-discrimination laws and regulations. Experts warn that auto lenders and finance and insurance (F&I) offices risk facing costly lawsuits and reputational damage if they fail to properly test and validate their AI models. To mitigate this risk, industry insiders recommend that lenders and F&I offices thoroughly test AI models for potential biases and discriminatory practices, and verify the accuracy of AI-generated calculations and credit assessments. By taking proactive measures to address these concerns, auto lenders and F&I offices can safeguard their businesses and maintain the trust of their customers.
Auto lenders and F&I offices can protect themselves from AI compliance violations by testing models for discrimination and validating AI-generated calculations, experts say.
