Humans Judged by Machines: The Rise of Artificial Intelligence in Finance, Insurance, and Real Estate

There are opportunities but also worrisome trends as AI is applied in finance, insurance, and real estate. In these domains, persons are increasingly assessed and judged by machines. The financial technology (Fintech) landscape ranges from automation of office procedures, to new ap- proaches for storing and transferring value, to the granting of credit. The Fintech landscape can be separated into “in- crementalist Fintech” and “futurist Fintech.” Incremental- ist Fintech uses data, algorithms, and software to comple- ment professionals who perform traditional tasks of exist- ing financial institutions. It promises financial inclusion, but this inclusion can be predatory, creepy, and subordi- nating. These forms of financial inclusion undermine their solvency, dignity, and political power of borrowers. Futur- ist Fintech’s promoters claim to be more equitable, but are likely to falter in their aspiration to substitute technology for key financial institutions. When used to circumvent or co-opt state monetary authorities, both incrementalist and futurist Fintech expose deep problems at the core of the contemporary digitization of finance.