By Alexander Saeedy
JPMorgan Chase and two venture-capital firms are investing $10 million in FairPlay, a startup that helps banks and other financial services companies eliminate bias against their customers when they use artificial intelligence.
FairPlay sells software it says helps banks and other lenders ensure their use of AI isn't unfairly excluding or disadvantaging particular groups of people.
Many banks are ramping up their use of AI to make credit decisions about consumer loans, including JPMorgan. But they run the risk of introducing "algorithmic bias," which occurs when AI tools decide lenders shouldn't lend to segments of the population for reasons other than creditworthiness.
JPMorgan is acquiring a minority stake in FairPlay, alongside venture-capital firms Infinity Ventures and Nyca Partners. The bank's investment is coming from its impact finance team, which aims to invest in companies that promote economic growth across society.
"This funding enables us to help more lenders and insurers make decisions that benefit their businesses and their customers," said FairPlay Chief Executive Kareem Saleh.
This item is part of a Wall Street Journal live coverage event. The full stream can be found by searching P/WSJL (WSJ Live Coverage).
(END) Dow Jones Newswires
February 28, 2025 05:00 ET (10:00 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
免責聲明：投資有風險，本文並非投資建議，以上內容不應被視為任何金融產品的購買或出售要約、建議或邀請，作者或其他用戶的任何相關討論、評論或帖子也不應被視為此類內容。本文僅供一般參考，不考慮您的個人投資目標、財務狀況或需求。TTM對信息的準確性和完整性不承擔任何責任或保證，投資者應自行研究並在投資前尋求專業建議。