36. However, banks that have chosen or will choose this path should also be aware that it is not without its pitfalls, as the report I mentioned earlier highlights. The difficulty in interpreting the results of algorithmic selection involves, in the absence of specific safeguards, the risk of losing control over the determinants of decisions.
It makes it more difficult to explain to customers why their application for credit was unsuccessful. The risk of unfair discrimination against individuals or categories of customers must be dealt with, also in view of forthcoming regulatory interventions regarding artificial intelligence. These difficulties do not only affect banks, but apply to anyone who uses similar techniques to grant credit.