The mortgage industry is buzzing about generative AI and Rajshekar Prabhakar, director of data science, is entering the chat providing his take on today’s trends and what’s coming next in the interview below.

Q: What is the difference between AI and generative AI?

A: Traditional and generative AI are different – and complementary. Traditional AI can do things like recognize faces in photos, help you find what you're looking for online, or even suggest movies you might like. It uses information it has learned to make decisions and answer questions.

Generative AI, on the other hand, learns from examples and can combine what it knows to make something totally new and creative. It also adds a creative twist to the smart abilities of traditional AI, making it even more useful for things like writing code, designing or even creating content in some industries. So, if regular AI is good at understanding and processing information, generative AI is great at inventing and coming up with fresh ideas.

To put it into context, using interest rates as an example: you can leverage traditional AI to help predict if interest rates will go up or down and use generative AI for guidance on how you should adjust your business based on interest rates.

Q: What excites you most about AI and how it is becoming more commonplace in the industry?

A: The rapid advancements in artificial intelligence, particularly in large language models, reasoning models and agentic AI, are revolutionizing industries – including the mortgage industry – and reshaping everyday life. Modern AI models possess the ability to efficiently extract and comprehend intricate information from complex documents. As a result, the mortgage process, which traditionally required significant time investment, has been streamlined. This analysis capability extends to images, enabling more informed assessments during the mortgage process. Ultimately, this technological advancement not only automates various procedures but also helps decrease overall closing costs and reduces errors.

Q: What are some misconceptions about AI?

A: Many individuals engage with AI technologies and may assume that because these tools can easily solve simple problems, AI can do everything, which is far from the truth.

In reality, even the most advanced AI models today have limitations. Until we develop general artificial intelligence (AGI) or "super AI," many shortcomings remain. For instance, while AI can analyze data and perform automation tasks efficiently, it can struggle with reasoning in complex scenarios or produce inaccurate information—often referred to as "hallucinations."

Understanding how AI models work and recognizing their strengths and weaknesses is crucial. This oversight emphasizes the importance of having skilled professionals, such as AI developers and data scientists, who can effectively harness these technologies. They can complement the capabilities of cutting-edge AI with established tools and methodologies, creating a more robust automation process that includes human oversight, often referred to as the "human-in-the-loop" approach. While AI holds great promise and potential, it is essential for users to maintain realistic expectations and recognize the necessity of expertise in effectively implementing AI solutions. Understanding the true capabilities of AI can help bridge the gap between enthusiasm and practical application, paving the way for more successful integration of these powerful technologies.

Q: How is ServiceLink leveraging AI?

A: As a leader in the mortgage services industry, ServiceLink has been at the forefront of leveraging artificial intelligence to enhance operations and improve outcomes for clients since 2015. Recognizing the transformative potential of AI technologies, ServiceLink has successfully integrated them into various aspects of its workflow, even before the recent advancements in generative AI.

The company has employed predictive modeling and analysis, utilizing vast datasets to forecast potential issues related to properties, particularly those in distress. This proactive approach enables us to provide valuable insights that help investors and financial institutions mitigate risks effectively.

ServiceLink is also harnessing the power of natural language processing (NLP) and machine learning to streamline the processing of mortgage and title-related documents. By automating workflows, the organization significantly reduces errors, accelerates processing times and lowers operational costs. This commitment to efficiency demonstrates our expertise in utilizing technology to enhance key business functions.

The organization employs NLP in quality control processes, ensuring the accuracy and reliability of reports submitted by appraisers and inspectors. By complementing this technology with an expert review team, we can identify and rectify discrepancies before final submission to clients, thus enhancing service quality and client trust.

With a robust team dedicated to developing and implementing AI solutions, ServiceLink continues to explore innovative possibilities in utilizing AI to tackle complex challenges within the mortgage servicing landscape. Our ongoing efforts reflect a commitment to harnessing AI on a scale, ensuring efficient and accurate service delivery for all stakeholders involved.

Q: What are some AI trends in lending that you foresee being big in the future?

A: One of the most prominent trends will be the increased use of AI for automation across diverse workflows. Organizations will implement advanced AI solutions to streamline processes, enhancing efficiency and reducing human error. With the advent of new AI policies, businesses will also need to adapt to evolving regulatory frameworks, ensuring compliance while leveraging the power of AI.

The quality of AI-driven services is expected to dramatically improve, directly impacting customer experience and operational performance. In the mortgage and lending sectors, we will likely see new innovations in onboarding processes, making them faster and more user-friendly. AI will facilitate seamless interactions through the widespread adoption of chatbots capable of understanding and responding to customer inquiries more effectively.

Overall, the landscape of AI moving into 2026 will reflect a dynamic shift toward more intelligent automation solutions, enabling organizations to enhance their capabilities while providing superior services to their customers. As these trends unfold, partnership with organizations well-versed in the latest innovations will remain essential.

For more information on ServiceLink’s approach to automation, contact us today.

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