Document AI in Loan Production and Servicing: Identifying and Addressing the Legal and Regulatory Risks

Balancing Increased Efficiencies and Lower Costs While Ensuring Compliance With Regulatory Requirements

Recording of a 90-minute premium CLE video webinar with Q&A

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Conducted on Thursday, August 17, 2023

Recorded event now available

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Course Materials

This CLE course will discuss the vital role Document AI (intelligent document processing) plays in loan production and servicing. Despite the cost savings and efficiencies in the use of these technologies, financial institutions need to be mindful of the guidelines and regulations related to fair lending, consumer protection, and anti-discrimination when incorporating AI tools into the loan documentation, lending, and servicing lifecycle.


Banks and financial institutions are using AI to automate financial processes, decisionmaking, and services. Document AI is vital for organizations due to its potential to enhance efficiency, reduce operational costs, and improve customer experiences.

As the use of AI by banks and financial institutions increases in popularity, regulatory agencies are slowly adapting to changes in market practices stemming from AI developments. Although banks and investment firms using AI may benefit from increased efficiency and reduced transaction time and costs, among other benefits, they must consider potential legal and regulatory risks associated with each new instance of AI use.

Specific regulations addressing the use of AI software by banks and financial institutions have not yet been implemented. However, there are several regulatory frameworks, including industry-specific regulations, which may apply to the use of AI, depending on the context of its use. Additionally, several state jurisdictions are considering regulations that address algorithmic accountability and transparency.

Listen as our authoritative panel explores how AI has automated loan production by transforming document collection, enhancing accuracy and speed in underwriting, and improving various aspects of compliance. The panel will also address the increasing regulatory focus on issues unique to or heightened by AI, and the regulatory risks AI presents under current banking and consumer financial laws, regulations, and requirements.



  1. How banks and financial services institutions are leveraging AI
  2. Opportunities and benefits of AI
  3. Disadvantages and risks of AI
  4. Regulatory oversight of AI and AI software implementation
  5. Privacy and cybersecurity concerns


The panel will review these and other key issues:

  • How is Document AI technology and its applications being used in the loan documentation and servicing process?
  • What are the regulatory issues raised by AI?
  • What are the potential liabilities for financial institutions that rely on AI?
  • What are the latest enforcement actions concerning the use of AI?


Bartosch, Linda Ann
Linda Ann Bartosch


Ms. Bartosch’s practice encompasses a broad range of real estate finance, structured finance and investment...  |  Read More

Steffen, Justin
Justin C. Steffen

Barack Ferrazzano Kirschbaum & Nagelberg

Mr. Steffen practices at the intersection of law, banking, and innovation. Focusing on bank-fintech partnerships,...  |  Read More

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