Fairness in AI and Machine Learning
By Svetlana Borovkova, Head of Quantitative Modelling
Artificial Intelligence (AI), powered by Machine Learning algorithms, is finding its way into the financial system. AI is currently applied in financial institutions in immaterial areas such as marketing (product recommendation) or customer service (chat bots). However, slowly but surely AI is gaining ground in high-stakes decision making such as credit issuance, insurance underwriting and identification of fraud and money laundering.
These applications are potentially very sensitive to unfair treatment of different groups or individuals. Such an unfair, biased treatment is particularly damaging for finance sector, as it is held in higher societal standards than other industries, because it is fundamentally based on trust.