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.
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February 28, 2025 05:00 ET (10:00 GMT)
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