Employing AI and ML in Risk Assessment for Lending for Assessing Credit Worthiness

AI and ML are increasingly being used in risk assessment for lending for assessing the credit worthiness of individuals and companies. The use of AI and ML in credit risk assessment is poised to revolutionize the finance sector and provide banks with better insights into customers' financial behavior and risk profiles. AI and ML methods can automate tedious risk assessment tasks, uncover hidden patterns, develop powerful predictive models, and enable banks to accurately assess the creditworthiness of borrowers. This paper covers different aspects of employing AI and ML for credit risk assessment, discusses current trends, and suggests potential future directions. We conclude that the adoption of AI and ML in banking is gaining momentum and is likely to become the de facto solution for credit risk assessment in the years to come.