Economic Letter
Brief summaries of SF Fed economic research that explain in reader-friendly terms what our work means for the people we serve.
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How AI Adoption Might Affect Bank Lending
Greeshma Avaradi, Naomi Halbersleben, Zheng Liu
Commercial banks have led the adoption of artificial intelligence (AI) in recent years. Evidence suggests that banks using AI more intensively tend to have higher returns on assets and higher shares of problem loans. Increased AI usage is also associated with declines in the shares of small business lending. This pattern suggests that AI helps…
