Financial institutions use artificial intelligence (AI) and machine learning (ML) models to reshape debt recovery. Although you probably haven’t noticed any changes yet — these technologies are already having a massive impact on the finance industry.
Why AI and ML Are Essential for Debt Recovery
Debt grows out of control as people’s priorities shift, interest rates hit historic highs, and the cost of living rises. For instance, outstanding credit card debt reached over $1 trillion in the United States in 2023. Although it’s an unfortunate milestone, it reveals a systematic issue.
Now more than ever, loans are becoming delinquent. About 28% of American consumers have at least one debt in collections, and
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