Mortgage lenders are turning to AI to improve efficiency, accuracy, and customer experience. But a common mistake is starting with the area of greatest need rather than focusing on what AI does best. The right AI project should not always target your biggest challenge, but instead maximize AI's potential to deliver consistent, high-value results.
Here are three suggestions for choosing the best AI project for your lending operations:
1. Focus on Predictability and Repetition, Not Complexity
AI excels at handling repetitive, data-driven tasks. While you might be tempted to apply AI to your most complex issues, such as unique underwriting scenarios or niche customer segments, it may not deliver the solution you are looking for. Instead, focus on areas where AI can automate predictable processes. Extracting information from documents, re-organizing content into a specific format, comparing information with multiple sources. By starting here, you can save time, reduce manual errors, and free up your team to focus on higher-level tasks that require human judgment.
2. Look for Quick Wins Over Big Wins
It’s easy to fall into the trap of thinking AI should tackle the largest problems first. However, the best AI projects often yield quick wins that don’t require overhauling entire workflows. Start with a project where AI can deliver measurable results in days or weeks, not months. For instance, automating a 15-minute step of a 2 hour process can yield immediate benefit. Trying to automate the whole process at once may create more churn than anticipated benefit.
3. Choose Projects Where AI Can Work Alongside Your Team
AI is most effective when it complements human expertise. Focus on areas where AI can enhance your team’s decision-making rather than fully automating a process. For example, helping ideate on marketing content or aiding a brainstorming session can be a catalyst for innovation. Asking a Large Language Model (LLM) “give me 10 suggestions to improve the following process…” may surface unforeseen ideas or help highlight an ideal solution.
Conclusion
The best AI project for your mortgage lending operations isn’t always the one that addresses your most pressing needs. Instead, it’s about choosing tasks that AI handles best – repetitive processes, areas where quick wins are possible, and those where it can work alongside your team. By focusing on AI’s strengths, you can drive sustainable improvements, gradually transforming your operations while minimizing risk.
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