AI takes on the specialist finance industry: What firms must know

This month’s winner? A Guardian journalist tried to interview an AI avatar of a Leeds MP… and the whole thing nearly fell apart over the phrase “Now then”. Turns out, even the most advanced models haven’t quite cracked Yorkshire yet (fair enough, neither have the Southerners). It’s a funny story (and well worth the read) but also kind of perfect. Because it sums up exactly where we are right now: wildly impressed by what AI can do, and still gobsmacked by what it absolutely cannot.

There’s a strange, thrilling energy running through the latest issue of Bridging & Commercial Magazine. A kind of charged tension between the promise and peril of progress — particularly in specialist finance, where change has a habit of showing up before the manual does. We’re all hovering somewhere between cautious optimism and that split-second hesitation before forwarding a video to a colleague: “Wait… is this real, or AI?”

Our cover story doesn’t hold back: a powerful warning from solicitors about how the data behind AI tools may not just be flawed — but potentially biased in ways that could impact real borrowers. Imagine discovering your deal fell through because a black-box algorithm trained on non-diverse datasets decided your asset wasn’t up to scratch. It begs the ongoing question: do we need serious government-level training, transparency, and regulation?

That’s not to say the industry isn’t excited. At Keystone Property Finance, one expert told us that when AI is used well, it feels magical. Nivo agrees, reminding us in their column that the more AI is used in lending, the smarter and more valuable it becomes to the business. There’s a sweet spot, they debate, between innovation and intention. But hit the wrong note and the harmony quickly becomes dissonance. As one lawyer writes in a sharply argued article, deploying AI in complex negotiations might not just be risky — it could be a very expensive mistake.

We also spoke to four finance specialists who’ve seen AI elevate everything from drafting marketing content and summarising valuation reports, to spotting trends in large data sets — but they’re clear-eyed about the risks. One flagged that it should never be the sole source of education, especially when the AI they had used had misinterpreted a key point regarding regulated loans.

Still, the human side of the story is alive and well. MT Finance’s Gareth Lewis talks to us about his promotion to deputy CEO and the bold move into commercial mortgages.

Speaking of bold moves, we chat to Allica Bank, which is banking (literally) on AI to help it capture 10% of the UK SME market by 2027. There’s genuine optimism here, rooted in strong strategy and a belief in tech as an enabler, not a replacement.

And for a lighter — but no less thought-provoking — take, check out Duncan Kreeger’s reflections on cloning himself via DK AI. A digital twin designed not for ego, but for clarity. This isn’t just another chatbot. It’s a deliberate attempt to embed Duncan’s thinking into AI-run software, generating real-time responses that mirror how he would actually answer questions. “It started because a lot of people ask me for mentoring,” he told us. It’s a quietly radical idea, and one that’s stuck with me. If I could train a version of myself to help my team when I’m out across the country, sign me up.

As for me, I recently came across a piece of UCL research that found even the most advanced AI models tend to mirror and amplify — rather than correct — human bias, which could have profound implications as AI becomes a staple in our lives. It’s a sobering reminder: tech isn’t inherently fair, just fast. And if we’re not careful, we’ll mistake speed for progress.
See you on the other side (hopefully not in a deepfake Teams meeting).