UNITED STATES — The Federal Reserve’s top banking regulator, Michael S. Barr, has expressed caution about the potential impact of artificial intelligence (AI) on efforts to ensure underserved communities have fair access to housing.
Speaking to the National Fair Housing Alliance, Barr said that while AI held great potential for extending credit to "people who otherwise can't access it,” it also carried risks including "digital redlining" and "reverse redlining."
Digital redlining, Barr explained, refers to AI technology being used to exclude majority-minority communities from housing opportunities, while reverse redlining involves such communities being pushed towards more expensive or inferior lending products. CNBC reports.
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