AI might revolutionize how we borrow money. But is that a good thing?

Almost Friday! Dan DeFrancesco in NYC, and I'm feeling both grateful and disappointed that I missed out on drinking "borgs" in college. 

Today, we've got stories on a meeting between Morgan Stanley's CEO and the Saudi crown prince at the onset of the pandemic, how one top hedge fund is looking to team up with ChatGPT, and rich people trying to live forever.

But first, the banker robot will see you now.

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1. So about that loan...

If you've followed the news at all this year — and certainly this newsletter — you've heard about how ChatGPT, and more broadly generative AI, is set to shake up the world of finance.

(If you haven't, here are the answers to all the questions you're now too afraid to ask about ChatGPT.)

There are plenty of interesting and valuable use cases for ChatGPT-type tech in finance. We've written about Chime developing a chatbot to help engineers build new features and tools for the neobank faster, and Swedish PE giant EQT using ChatGPT "to make cyborgs" out of its dealmakers, to name a few. 

But a recent report by Credit Suisse on the use cases for both ChatGPT and AI in finance caught my eye. The report, which was summarized by Insider's Thomas Maxwell, mentions lending as one area that can benefit from the use of AI. As the report notes, the tech could be used to "verify customer information to assess the eligibility for loan applications, automate loan underwriting, assess credit risks, etc."

This sounds like a great idea! Credit scores stink. They are outdated, often biased, and don't give a complete picture of the potential borrower. But despite the mountain of evidence we have against using them, they're still a key piece of peoples' financial lives. 

Infusing some cutting-edge tech into the process seems like it could fix a lot of those issues. Firms are already doing this to a degree, but it's not a silver bullet. AI models are only as good as the data they receive, which leaves them susceptible to bias, just like humans.

They also aren't always transparent, which is a big no-no in credit decisioning. You can't deny someone a loan and then shrug your shoulders when they ask why.  

I am sure the tech will continue to improve and, hopefully, solve some of these issues. But the real hurdle might come down to selling the concept to all of you. 

Simply put: Would you accept getting denied for a loan if you knew it was a decision made solely by a robot?

To be clear, we are a long way away from this being a possibility, both from a technical and legal perspective. Yet it's not hard to imagine a future when these choices could be made without human intervention.

And if that's the case, even if you knew the data and models were accurate and unbiased, would you accept your decision from Mr. Robot, or want to speak to an actual human? 

Click here to read more about how generative tools can help with everything from loan underwriting to personalized financial advice.

And check out six areas of Wall Street where industry experts expect the tech to be disruptive.

In other news:

2. So James Gorman and Mohammed bin Salman meet in a conference room... We've got an excerpt from Liz Hoffman's new book about a sneeze-filled meeting between the Morgan Stanley CEO and the Saudi crown prince at the onset of the pandemic. Check it out here. And get your copy of "Crash Landing: The Inside Story of How the World's Biggest Companies Survived an Economy on the Brink."

3. A top-performing hedge fund is looking to team up with one of the hottest tech tools. Citadel is looking to looking to secure a license to use ChatGPT across the firm, according to billionaire founder Ken Griffin. More on how the hedge fund wants to leverage the tech.

4. Win or lose, you still gotta pay the dues. Izzy Englander's Millennium Management told clients that it'll expect to get paid regardless of whether the hedge fund actually makes money for its investors, according to Bloomberg. Read more on the hedge fund's new fee structure.

5. Ken Griffin isn't optimistic about the economy. The billionaire hedge fund manager believes all signs are pointing towards a recession. Here's why he sees the glass as half empty.

6. Can't get a deal done? OK, you're fired. With the dealmaking environment at a standstill, activist investors can't rely on their typical strategy of trying to force a sale. That's led them to target companies' top executives, Reuters reported. And for more on why activist investing is actually harder than it looks, click here.

7. Check out these cities if you want to rub elbows with the uber-rich. US cities accounted for half of the top 10 spots where the super-rich buy real estate, according to a recent survey. From New York to Los Angeles to a Midwest gem, see the full list here.

8. Ray McGuire joins Lazard. The former vice chairman of Citigroup and onetime New York City mayoral candidate is joining the investment bank as its president, Bloomberg reported. For more on McGuire, check out our 2020 profile of him.

9. They're watching you at the water cooler. Those meetups at the water cooler are actually helping businesses keep track of their employees. Companies are eager to get data from Bevi, a high-tech water cooler, to better understand back-to-office trends. Read more here.

10. Here are all the uber-rich people trying to fight aging and extend their lifespan. If this list of 15 entrepreneurs is any indication of the type of people that'll be left on Earth, I'll be fine not sticking around. See the entire list for yourself.

Curated by Dan DeFrancesco in New York. Feedback or tips? Email ddefrancesco@insider.com, tweet @dandefrancesco, or connect on LinkedIn. Edited by Jeffrey Cane (tweet @jeffrey_cane) in New York and Hallam Bullock (tweet @hallam_bullock) and Nathan Rennolds (tweet @ncrennolds) in London.