AI-driven revolution in credit underwriting: Technical implementation and impact analysis

Arora, Aditya (2025) AI-driven revolution in credit underwriting: Technical implementation and impact analysis. Global Journal of Engineering and Technology Advances, 23 (1). pp. 403-409. ISSN 2582-5003

The integration of artificial intelligence and machine learning technologies has revolutionized credit underwriting processes, marking a significant transformation in financial services. This technical analysis explores the architectural components, implementation frameworks, and performance metrics of AI-driven credit assessment systems. The article examines how advanced machine learning models, including gradient boosting machines, deep neural networks, and ensemble methods, have enhanced credit risk evaluation while promoting financial inclusion. The article investigates the multi-tiered architecture of modern credit assessment systems, encompassing data ingestion, feature engineering, and network effect analysis. It further evaluates statistical performance indicators, business metrics, and ethical considerations in AI implementation. The article demonstrates substantial improvements in credit decision accuracy, operational efficiency, and fairness across demographic groups, while highlighting the importance of explainable AI and robust monitoring systems in maintaining transparency and regulatory compliance.