New Experian study reveals critical role of AI in lending and key drivers of accelerated adoption by financial institutions

A recent Experian Perceptions of AI Report that polled more than 200 decision-makers at leading financial institutions on their AI investment strategy offers key insights into their adoption of AI and expected outcomes when investing in the technology. Notably, AI adoption among financial institutions is accelerating, with 84% of respondents identifying AI technology as being critical or a high priority for their business strategy over the next two years.

Further underscoring AI’s strategic importance, a striking 89% state that it will play a critical role across the lending lifecycle. Study findings shed light on that role, pointing to several essential outcomes that respondents expect when investing in AI, including increased operational efficiency, improved credit decisioning accuracy and more effective risk mitigation.

“This study helps us better understand the business drivers behind the strong and increasingly fast-moving investments in AI among our financial institution customers,” said Vijay Mehta, EVP, Global Solutions and Analytics, Experian Software Solutions. “We also have a sense of the factors they must navigate, such as the regulatory environment around AI and data quality, both areas where Experian has deep expertise to help.”

Data Quality: The Cornerstone of AI Success

Other factors weigh into the respondents’ decision-making as 73% of them are concerned about the regulatory environment around AI and 65% consider having AIready data as one of the biggest challenges. In fact, data quality is considered by respondents as the most critical factor influencing trust in vendors when choosing an AI partner.

“High marks regarding the regulatory environment and data quality underscore the need for explainable AI, eliminating any perceptions of AI as a ‘black box,’ building trust and meeting the highest compliance standards,” said Mehta. “The top takeaway here is that vendors offering AI solutions must deliver transparent, inclusive AI-powered products and services that are driven by the most accurate data.”

Experian’s Advantage: Data Ecosystem and Advanced Analytics

“The concerns raised by respondents play heavily into Experian’s strengths of providing an industry-leading data ecosystem and advanced analytics that accelerate model development, decisioning and gotomarket strategies, as well as real-time identity protection and fraud prevention,” said Mehta. “With recent AI-powered advancements in our Experian Ascend Platform, we now offer intelligent, proactive systems that anticipate customers’ needs and detect risk. These systems surface business opportunities in real time and ultimately deliver demonstrable ROI.”

Methodology

The Perceptions of AI Report was conducted by Phronesis Partners and included 200 key decision makers at leading financial institutions.