AI Trends For 2026 - AI and Algorithmic Bias in Financial Services

With the exponential growth of AI technologies, financial institutions must address algorithmic bias head on, as it is one of the most significant emerging issues in certain core activities, including credit underwriting, fraud detection, customer engagement, and pricing. While AI-enabled services can increase efficiency and accuracy, they may also encode or amplify disparities embedded in historical data. For banks, credit unions, fintechs, and non-bank fintech lenders, algorithmic bias is not merely a reputational issue, it poses legal and supervisory risk under federal and state fair-lending laws.

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