Financial distress management has witnessed major developments in the application of artificial intelligence. These developments cut across operational and ethical areas, for example, potential algorithmic bias and models behaving in an understandable and transparent manner-giving room to human-in-the-loop for checking decisions. The adoptions of these AI technologies should be promoted in the spirit of responsibility through the explainable AI technology and standardized governance frameworks.
If we consider the other side of the coin, the establishment of control measures regarding the levels of automation becomes indispensable with the advent of autonomous AI systems, so as to safeguard equity in the outcome and over-reliance fair results may be an unintended consequence.
In the words of Het Mistry, AI is revolutionizing the paradigm of financial distress through predictive analytics, real-time intervention, and personalized planning strategies. So, the ethicality and human oversight of these troubled instruments will be key for their responsible adoption. By focusing on these matters, a stable, inclusive, and resilient landscape can be structured for businesses as well as individuals.
