In Regulated Lending, Know Which 10% of Your Process Should Use AI

Short summary

In regulated lending, LLMs draft prose while deterministic code performs error-critical calculations and humans own risk decisions—a structure mandated by OSFI E-21. Teams succeed not by using larger models, but by identifying which 10% of their process should involve AI; the other 90% requires deterministic code and human accountability for compliance.

• •LLMs draft prose; deterministic code handles calculations; humans own risk decisions
• •This three-part design is mandated by OSFI E-21 for regulated lending
• •Winning teams identify which 10% of the problem should use AI
• •Most failure comes from over-automating what should stay deterministic

Generated with AI, which can make mistakes.