Fed’s Barr Says AI Risks Amplifying Bias and Errors in Lending

The top US bank regulator says that lenders need to ensure that artificial intelligence tools don’t perpetuate biases and discrimination in credit decisions.

Federal Reserve Vice Chair for Supervision Michael Barr said that the central bank is working on its supervisory efforts around AI. He added that if used safely, the technology could have a positive impact on access to loans.

Michael Barr

Photographer: Al Drago/Bloomberg

AI could leverage data “at scale and at low cost to expand credit to people who otherwise can’t access it,” Barr said Tuesday in prepared remarks for the National Fair Housing Alliance conference in Washington. “While these technologies ...