Companies have increasingly leveraged artificial intelligence (“AI”) to facilitate decisions in the extension of credit and financial lending as well as hiring decisions. AI tools have the potential to produce efficiencies in processes but have also recently faced scrutiny for AI-related environmental, social, and governance (“ESG”) risks. Such risks include AI ethical issues related to the use of facial recognition technology or embedded biases in AI software that may potentially perpetuate racial inequality or have a discriminatory impact on minority communities. ESG and diversity, equity, and inclusion (“DEI”) advocates, along with federal and state regulators, have begun to examine the potential benefit and harm of AI tools vis-à-vis such communities.
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