8CIOReview | | NOVEMBER 2021IN MY OPINIONDuring an era of increased computerization and artificial intelligence, it is often the first instinct of business leaders to automate, replacing humans with computers wherever possible to reduce costs, speed up processes, and minimize error. Algorithms decide so much in our daily lives today ­ from what ads we see during our online searches to our credit worthiness when making a home purchase. While machine learning can certainly find patterns that may predict mortgage borrower behavior, relying on artificial intelligence alone to make loan decisions is a sure path to a dead end.At TD, we use AI to help underwriters analyze data (i.e. income calculations, credit scoring, repayment histories based on the down payment amount), but the loan decision is ultimately made by a living, breathing TD colleague. Here's why:1. An algorithm alone cannot tell us what we want to know­Are our customers being supported with lending solutions suitable for their circumstances?Think about the concept of the self-driving car. It can determine the best route for the quickest arrival to our destination, and it reduces driver error that can result in crashes. But, it cannot understand context. A human behind the wheel can see a child on the sidewalk playing with a ball and recognize the potential risk where a self-operating vehicle cannot.The same is true for underwriting. Computers can crunch the numbers much quicker than your average underwriter, but they cannot provide the contextual analysis that is crucial to the underwriting process. AI helps us make loan decisions faster by eliminating manual input and computation. However, it does not factor in the nuanced relationship between each piece of data. The underwriter understands the life cycle of the individual­where they are in their life and career journey and the potential pitfalls that are multiplied when risks are THE PARTNERSHIP BETWEEN ARTIFICIAL INTELLIGENCE AND HUMANS IN LENDINGBy Patrick Halonen, Senior Vice President, Head of Underwriting, TD
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