AI and Machine Learning Revolutionizing India's Credit Landscape

Experian's research reveals that AI and ML are transforming credit decisioning in India, expanding access to credit and improving portfolio performance. Despite organizational resistance, ML offers significant benefits, including automation and improved risk prediction. GenAI is emerging as a useful tool in credit risk management.

A recent study by Experian, conducted in collaboration with Forrester Consulting, reveals the extensive impact of artificial intelligence (AI) and machine learning (ML) on India's credit decision-making landscape.

Insights from 109 senior credit risk decision-makers across India indicate ML's role in expanding financial access, improving portfolio results, and accelerating digital decision-making despite continued challenges in adoption.

With widespread acceptance, ML is facilitating faster, precise credit decisions, broadening access to underserved segments, enhancing risk prediction, and improving profitability while reducing bad debt. Generative AI is also gaining traction, streamlining tasks like model documentation and regulatory compliance.