Alfa, the developer of the Alfa Systems software platform for equipment and auto finance, has published a new position paper on artificial intelligence in the industry.

Balancing Risk and Reward: AI in Equipment and Auto Finance is the first in a series of papers by Alfa, and explores the proven benefits and risks which must be considered by an asset finance organization seeking to incorporate AI strategies into its business.

In the piece, author Martyn Tamerlane and various contributors delve into the ways in which AI is impacting our industry, and particularly the machine learning techniques which are proving most effective. They also evaluate the key methods to optimise estimation and significantly reduce costs, and the potential pitfalls of adopting an AI strategy without sufficient planning and support.

Tamerlane, a solution architect at Alfa, cautions, “Not paying attention to the data being used in an AI solution can lead to severe regulatory consequences. Human judgement is vital to the successful configuration of the machine learning process.”

The paper may be downloaded for free here.