Lenders are still lending as if AI isn’t changing the world — but it is, fast.

AI is already impacting business models, costs, and margins across industries.

ONCI’s AI Credit Impact helps lenders see how — identifying which granular industries and borrowers are most exposed, and how their credit metrics are expected to change over the next five years.

WHY IT MATTERS

Most banks are underwriting new loans into an economy that's changing in real time.

Generative AI is transforming how companies operate, cutting costs, compressing margins, and disrupting established business models. Some borrowers are gaining efficiency and scale, while others are seeing competitive dynamics shift faster than ever before.
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Traditional credit reviews miss these shifts. They rely on historical data and backward-looking assumptions that no longer hold.
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At OakNorth Bank, the need for a consistent view of AI’s impact became clear early. Its CEO, Rishi Khosla, noticed that analysts were assessing GenAI’s impact on borrowers in different ways, leading to varied conclusions and uncertainty across the portfolio. To address that, he asked ONCI to build a unified, defensible framework to assess AI’s effect at the granular industry level, giving the bank a single forward view across origination and monitoring.
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That same capability now underpins ONCI’s AI Credit Impact framework, helping other lenders quantify how AI is expected to affect borrower performance, industry resilience, and portfolio exposure.

HOW LENDERS SHOULD RESPOND

Every lender knows AI will reshape the credit landscape. The question is how to measure it.

Its effects are moving too quickly, and cutting too deeply across industries, to be captured by traditional forecasts alone. AI is altering cost structures, competitive dynamics, and revenue potential — creating both risks and opportunities that compound over time.

Staying ahead requires tracking AI’s impact in isolation, not just as part of broader economic trends. Lenders need a consistent lens that highlights which industries and borrowers are most exposed, where performance is likely to diverge, and how these shifts will affect credit strategy, portfolio composition, and lending priorities.

HOW LENDERS USE AI CREDIT IMPACT

  • Executives and Boards use it to understand how AI is impacting portfolio performance and concentration risk — and to demonstrate proactive oversight of AI's effects on credit risk.
  • Portfolio and Strategy Leads use it to see how exposure may shift across industries, informing growth priorities and capital allocation.
  • Credit Officers and Risk Managers use it to anticipate borrower-level deterioration or opportunity before it appears in financial results.

AI Credit Impact gives each of these teams a consistent, data-driven lens for forward-looking credit strategy.

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