Fitch Ratings has cautioned that the rising use of artificial intelligence (AI) in credit risk management could potentially disrupt employment and reduce tax revenues in developed economies. AI-driven automation in banking and financial services is increasingly replacing traditional credit assessment and processing roles.
While AI enables more efficient risk evaluation and decision-making, the report notes that automation may result in job losses in credit and risk management sectors, affecting income and corporate tax contributions. Financial institutions adopting AI must balance operational efficiency gains with workforce transition strategies.
Fitch emphasizes the need for governments and regulators to anticipate economic and fiscal impacts, ensuring that AI adoption supports sustainable growth while mitigating risks to employment and public finances.
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