With the right strategy and execution, AI's benefits will far outweigh the challenges associated with its implementation.
Determining the extent of AI integration and the types of technologies optimal for your business is half the battle. Through a comprehensive analysis of your organization’s needs and risk tolerance, you can identify the appropriate level of AI investment to pursue.
For this chapter, we will classify AI investment levels into two categories: lower-level investment, which involves a lower degree of AI technology adoption, and higher-level investment, which entails implementing AI technologies that directly impact your stakeholders more significantly.
Understanding "Lower-Level Investment" in AI
A lower-level investment in AI translates to tools with less sophisticated functionalities. Despite their simplicity, these tools offer significant benefits to an organization. Low-degree AI adoption involves systems where humans remain "in the loop."
According to the Harvard Business Review1, "Human in the loop (HITL)" AI models require human decision-making, with machines providing decision support or partial automation of some tasks. These AI solutions are designed to enhance efficiency in day-to-day operations, indirectly benefiting customers.
In this context, "investment" refers to both time and money. Higher degrees of AI integration typically require more significant financial outlays and more time for training and preparation. Conversely, lower-level AI investment provides value without the need for substantial resources or full automation.
Pursuing a Lighter Degree in AI Integration
Lower-risk AI tools optimize workflows for mortgage professionals. These tools can be categorized into reactive machines that don't make decisions independently of humans and limited memory machines that make predictions but not decisions. It's worth noting that all machine learning models are built with limited memory, allowing them to make predictions based on past data.
Examples of lower-level AI tools include technologies that streamline administrative tasks and shorten workflows. These tools empower users to focus more on strategic decisions, which humans best handle. Lower-level AI integration often involves HITL tools that provide suggestions based on data processing but require human intervention to take definitive actions.
In essence, lower-level AI requires more human oversight since machines cannot make independent decisions. While AI support exists, humans still control the outcomes, ensuring a seamless blend of technology and human expertise.
Value of Smaller AI Investments in Mortgage
Even minor investments in AI bring substantial value to the mortgage sector. Though there are inherent risks with any AI investment, a lighter investment is a prudent first step for organizations eager to integrate AI into their digital ecosystems. This approach is particularly suitable for those who are hesitant about adopting more advanced AI technologies that have a direct customer impact.
A lighter AI investment offers several benefits:
- Enhanced Efficiency: Automating routine tasks allows employees to concentrate on more complex and value-adding activities.
- Reduced Workload: Streamlining administrative processes decreases the burden on staff, enabling them to focus on strategic decision-making.
- Improved Accuracy: AI technologies can minimize human errors, enhancing operational accuracy.
- Cost Savings: Lower-level AI tools typically require less financial investment and operational disruption, making them ideal for gradual integration.
Conclusion
Embracing a lighter degree of AI investment provides a smooth introduction to the benefits of AI without substantial risks. Mortgage companies can improve efficiency, accuracy, and workflow optimization by starting with lower-level AI tools while maintaining human control over critical decisions. This approach eases the transition and sets the stage for future investments in more sophisticated AI technologies.
By planning carefully and leveraging AI judiciously, organizations can harness AI's transformative power to elevate their operations and provide superior service to their stakeholders.
