How AI Credit Scoring Models Learn Bias

AI Ethics with Fexingo: Bias, Safety, and Responsible Artificial Intelligence · Aug 9, 2026 · 8m

This episode of AI Ethics with Fexingo digs into the hidden bias in AI credit scoring. We trace how models trained on decades of lending data can perpetuate redlining, even when algorithms are blind to race. Lucas and Luna unpack a 2025 study that found predictive errors double for minority borrowers, and discuss the real-world impact: higher interest rates, denied loans, and a widening wealth gap. They also examine the regulatory response, including the Consumer Financial Protection Bureau's scrutiny of black-box models, and whether explainable AI can fix the problem or just add another…