A recent report from the U.S. Department of the Treasury shows artificial intelligence is changing the auto finance industry in several ways, says InformedIQ.com Vice President of Lending Strategies Jessica Gonzalez in a new blog entry at DealerELITE.

Released in December, the Treasury report is based on insights from more than 100 industry stakeholders who responded to a request for information. It makes clear that AI is modernizing the industry, albeit with the enhanced risk of data breaches and algorithmic bias, among other challenges.

Effective governance and ethical application is critical to overcoming those challenges, Gonzalez writes, but the potential benefits AI promises for all parties involved in the financing process are compelling.

“For instance, fintech partners can enable lenders to process applications in real time, which not only reduces costs but also enhances the customer experience. This practical application of AI demonstrates its potential in boosting financial inclusion by making financial services more accessible and efficient.”

Read more at DealerELITE