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AI and credit reporting issues

On Behalf of | Aug 22, 2023 | Credit Repair

Artificial intelligence continues to expand its reach into many areas of life, including commerce. The technology has proven to be a valuable tool for Illinois businesses, improving customer service and streamlining operations. Workers and customers might appreciate the way AI affects them as well. However, AI is not perfect, and actions taken by these programs could erroneously hurt someone’s credit score.

Businesses and the use of ai

Businesses find value in automated systems and algorithms that serve multiple functions. Some programs record information related to credit reporting, which raises concerns among lawmakers and regulators. At present, artificial intelligence is unregulated. However, the companies utilizing ai could be liable for mistakes and problems the programs cause. Remember, businesses must adhere to laws and regulations.

While artificial intelligence can do many things, it is not perfect. If an artificial intelligence program logs and reports incorrect payment information, negative marks could appear on someone’s credit report. A reduced credit score could harm a person financially, as would be the case if the negative information led to being turned down for a mortgage or paying higher credit card interest rates.

Reviewing a credit report

In time, regulators may address credit issues related to artificial intelligence errors. For now, people can take proactive steps to determine if anything is undermining their credit scores and reports. Ordering a copy of a report seems advisable since the person can check the report for incorrect information.

The aggrieved party could contact the entity that reported incorrect information and ask for an update. If the entity does not respond favorably, the injured party may contact the credit reporting agencies to address the matter.