“There were millions of them to eat
It took them all without missing a heartbeat!
Then again it had no heart and no soul
T’was an AI, more scary than a ghoul!”
In the future you may not get a bank loan because you did not charge your phone to more than 30 percent!
It is like how Munna bhai tells the girl who is meeting a guy that if he does not treat the waiter well or calls him using weird and downgrading sounds then he is not a good husband material!
Sounds funny!? It has happened! Not the waiter story but the loan!
read on!
The novel Nexus tells us how AI has taken over the decision making in many fields like Judiciary and banking sector!
There was a judgement call on a person who apparently had a high risk index according to the AI algorithm! This made the judge give a higher sentence to a petty crime!
When the defendant asked the court on what basis such a high punishment was given the Judge told about the AI algorithm! Now the most surprising and maybe distressing part is that even the Judge or even the lawyers there did not understand the algorithm or the value points used by the computer! They had no direct explanation! Even the higher court upheld the judgement since the algorithm ‘says so’!
In the future all the criminals have to do is bribe the computer with more RAM!
Even many firms use AI to filter out the thousands of applications by using keywords and data point systems! Of course many humans have tried to by pass or use this by copy pasting the job requirements verbatim and then making that particular font white! The AI see a line by line match and ‘selects’ that resume! That is how to fool the AI! Then again this is not possible in other fields!
Like in the banking and finance services, even now most of the work of initial assessment of loan is done by the AI!
Of course the initial points are given by the system admin but later on over a period of time and with more and more data the AI becomes more self sufficient and efficient! There is no role for any emotions!
But later on the way in which many of these AI’s work, and the criteria they use for credit scoring isn’t transparent and in many cases isn’t fully understood even by the bank or organisation deploying the AI! The system admin may get old or young but the AI is by then much more intelligent and ‘experienced’!
The AI does not care that you are struggling! All it knows are points in favour and against and an average of that is what makes the decision either in your favour or not!
The use of AI in banking and financial services has been accelerating in recent years, prompted in no small part by by the potential for significant savings in staff and overheads. A loan application AI can churn through thousands of applications in the time it takes a human loan officer to review just one!
Potential cost savings from AI applications is estimated at $447 billion for banks by 2023, leaving financial services companies across the board scrambling to find new ways to incorporate the technology into their products and services.
An analysis in a country known for being strict on tech and having hold of privacy of the citizens actually uses thousands of data points to grant millions of small loans in just a few seconds of analysis!
But there is a catch here!
The applicants have to grant the application full access to their smartphone and the AI then assesses micro data points that would probably never have been considered important by a traditional loan officer!
And these are the data which is finally analysed by the AI! You would be surprised at the data points but this is only a small list as published by the news report way back in 2017! You can very well imagine the state now or you can tell your AI assistant to do that!
The data points may include stuff like:
How much battery is left in the mobile phone!
The speed at which the users enter their date of birth and Email id!
If he or she took enough time to read a user agreement!
How many times a week does he or she order take-away food!
Other points analysed by another company also saw these trends like iPhone users tend to have lower late-payment rates than Android phone users, and people who don’t answer calls or whose outgoing calls go unanswered represent a higher default and fraud risk!
Other red flags include making many changes when filling in the application!
Multiple applications from a single Wifi hotspot is a danger sign!
And YES! Letting batteries run down and changing phones frequently!
The AI then builds a digital fingerprint of the prospective applicant that can be matched against previous loan customers to see if their profile matches those most likely to repay their loans. Customers who regularly let their phone batteries drop below 12% are not good prospects apparently!
The peculiar correlation between phone battery life and the % age likelihood of repaying a loan is something the algorithm has identified after analysing millions of data inputs and isn’t necessarily something that would make sense to a human!
By the way if you think that if your phone charge being always full is also good then even there you are wrong as found by another company which was using smartphone user data to score loan applications!
That company says that at the opposite end of the scale to very low battery life, hyper well-maintained smartphone batteries also raise a red flag in their loan system, as they might indicate a user is too ‘robotic’ and ‘not human enough’!
“Doomed if you do and doomed if you don’t!”
Now if you were planning to apply for a bank loan in that country which uses this algorithm wouldn’t you like to know the sweet percentage of the battery of your phone to get approval!? Well no HUMAN can tell you that since no-one within your bank really understands how their AI works and how it is scoring you!
Maybe use a computer for your loan application! Make sure the OS is not pirated and the antivirus is up to date! Also make sure the storage is neither full nor empty and the RAM is neither fast nor slow! It is all a matter of balance! Of course do not lose your mental balance reading all these since that is also a red flag for the AI! Anyway the AI may know that you must be insane to take the loan at these rates in the first place! If that is heating your brain then maybe turn off the AI computer for some time and listen to the other AI; Phone! Listen to some good old number by birthday celebrity Kedarnath Bhattacharya! My fav Dheere dheere se…By the way you know him as Kumar Sanu!
Now do not forget to charge your phone and sleep!
Shubh Ratri!
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