Banks and companies that use artificial intelligence to make loans agree with regulators that it should be tested for fairness. But they also say traditional loans could be just as biased.

Rohit Chopra, the director of the Consumer Financial Protection Bureau, has cautioned banks, credit unions and fintechs about fair-lending violations that may stem from reliance on artificial intelligence. His comments threaten to discourage financial firms from using the technology to crunch nontraditional data about borrowers, experts say.

The fintech’s algorithms are programmed like "Tesla’s self-driving cars," according to the company’s CEO.

Financial institutions said they needed more time to weigh in on issues such as how they use artificial intelligence for fraud prevention and underwriting.

Artificial intelligence (AI) is increasingly gaining ground in a number of areas of banking and financial services. It’s deployed to identify fraud, make trading decisions, recommend banking and financial products, and evaluate loan applications. This helps to reduce the costs of financial products and improve their efficiency and efficacy. However, there is growing evidence that AI systems are biased. Join American Banker’s Executive Technology Editor, Penny Crosman as she explores key AI-bias issues for the banking and financial services industry with Sonja Kelly, Director of Research and Advocacy at Women’s World Banking and Wisam Dakka, Co-Founder of Meemo.

By tracking remote workers with customizable benchmarks, Grind Analytics’ new software tool increased efficiency for one of its first users, OneTrust Home Loans.

The software will aim to take advantage of the anticipated volume growth in this particular type of origination.

Federal Reserve Gov. Lael Brainard said regulators are seeking to "understand the potential benefits and risks" from utilizing artificial intelligence in the financial services sector.

If you are underbanked you probably have limited access to mainstream financial services normally offered by retail banks. Many fintech startups offer alternative ways to measure credit risk, and assert that their products can help extend financial services to consumers who have not been well-served by traditional banks.

While it's no silver bullet, automation with careful monitoring and testing can help lenders eliminate racial bias toward potential borrowers, the developers say.