Much remains to be done before the technology can be safely deployed by mortgage brokers
The significantly improved understanding of client needs that AI-powered tools can provide to a broker should not be underestimated, according to Kevin Deveau, FICO Canada managing director.
With the COVID-19 pandemic putting a hard stop on face-to-face activity, brokerages that are planning to invest in artificial intelligence systems will have a distinct advantage in building a “360-degree view” of each customer’s unique situation.
“By incorporating predictive analytics and machine learning, [brokers] could be much more reactive and more customer-service oriented,” Deveau told Canadian Underwriter. “The broker could be more fine-tuned to when [a significant] event happens to the end customer. ‘I see you just bought a house. Do you have mortgage insurance?’”
The Office of the Superintendent of Financial Institutions has been more measured in its appreciation of the technology, however. The agency said earlier this year that it is considering tighter regulations on the use of AI by banks.
The caution is well-founded, as AI remains rife with potential decision-making hazards that can lead to it doing more harm than good.
“AI presents challenges of transparency and explainability, auditability, bias, data quality, representativeness and ongoing data governance,” said Jamey Hubbs, assistant superintendent at OSFI. “The credibility of analytical outcomes may erode as transparency and justification become more difficult to demonstrate and explain. There may also be risks that are not fully understood and limited time would be available to respond if those risks materialize.”
