Will loan officers be replaced by AI?
Updated
Loan officers score 63 of 100 for AI exposure. The largest share of their task time, 65%, is work AI speeds up while they stay in charge. AI can take over 33% outright, and 2% stays with people.
- 33% AI can do it
- 65% AI helps
- 2% Needs a person
High exposure
Higher than 94% of the 923 occupations we scored.
Task by task
We graded 30 tasks, listed here from most to least exposed. AI can do 10 of them today, speeds up 19 and leaves 1 to people.
| Task | AI exposure |
|---|---|
| Maintain and review account records, updating and recategorizing them according to status changes. Updating account records and statuses is routine data entry. | 85% AI can do it |
| Compute payment schedules. Payment schedule math is deterministic and easily automated in software. | 85% AI can do it |
| Calculate amount of debt and funds available to plan methods of payoff and to estimate time for debt liquidation. Payoff and liquidation calculations are formulaic and easily automated. | 80% AI can do it |
| Review billing for accuracy. Billing accuracy checks follow clear rules, suiting software. | 80% AI can do it |
| Prepare reports to send to customers whose accounts are delinquent, and forward irreconcilable accounts for collector action. Delinquency notices are templated letters; AI drafts, staff sends. | 75% AI can do it |
| Review loan agreements to ensure that they are complete and accurate according to policy. Checking agreements against policy checklists suits AI well. | 70% AI can do it |
| Review and update credit and loan files. Updating file records and notes is routine digital document work. | 70% AI can do it |
| Obtain and compile copies of loan applicants' credit histories, corporate financial statements, and other financial information. Compiling credit and financial documents is mostly retrieval. | 70% AI can do it |
| Authorize or sign mail collection letters. AI drafts collection letters; person authorizes and signs off. | 70% AI can do it |
| Submit applications to credit analysts for verification and recommendation. Routing files to analysts is routine workflow work. | 65% AI can do it |
Show the other 20 tasks
| Task | AI exposure |
|---|---|
| Match individuals' needs and eligibility with available financial aid programs to provide informed recommendations. Matching needs to aid programs is rules-based; officer confirms. | 65% AI helps |
| Assist in selection of financial award candidates using electronic databases to certify loan eligibility. Database eligibility checks are automatable; officer certifies final eligibility. | 60% AI helps |
| Establish payment priorities according to credit terms and interest rates to reduce clients' overall costs. Ranking debts by rate is computable; advice still needs officer review. | 60% AI helps |
| Review accounts to determine write-offs for collection agencies. Bad debt review is data analysis; AI flags, officer approves. | 60% AI helps |
| Analyze applicants' financial status, credit, and property evaluations to determine feasibility of granting loans. AI can analyze financials and credit, but officer judges feasibility. | 55% AI helps |
| Explain to customers the different types of loans and credit options that are available, as well as the terms of those services. AI explains loan types well; officer tailors final terms. | 55% AI helps |
| Stay abreast of new types of loans and other financial services and products to better meet customers' needs. AI can summarize new products quickly; officer verifies and applies. | 55% AI helps |
| Market bank products to individuals and firms, promoting bank services that may meet customers' needs. AI drafts marketing content; targeting and relationship selling stay human. | 50% AI helps |
| Inform individuals and groups about the financial assistance available to college or university students. AI drafts aid information; group presentations need people. | 50% AI helps |
| Handle customer complaints and take appropriate action to resolve them. AI drafts responses; resolving complaints needs human judgment. | 45% AI helps |
| Contact applicants or creditors to resolve questions about applications or to assist with completion of paperwork. Routine applicant questions and paperwork help suit chatbots. | 45% AI helps |
| Analyze potential loan markets and develop referral networks to locate prospects for loans. Data analysis helps; referral networking stays human. | 40% AI helps |
| Approve loans within specified limits, and refer loan applications outside those limits to management for approval. Approval is accountable; AI can prescreen against set limits. | 35% AI helps |
| Work with clients to identify their financial goals and to find ways of reaching those goals. Goal setting is advisory; AI drafts plans, advisor is responsible for relationship. | 35% AI helps |
| Confer with underwriters to resolve mortgage application problems. Underwriter discussions need live judgment; AI summarizes file issues. | 30% AI helps |
| Contact borrowers with delinquent accounts to obtain payment in full or to negotiate repayment plans. Negotiating repayment is live, emotional, and accountable; AI preps scripts. | 30% AI helps |
| Meet with applicants to obtain information for loan applications and to answer questions about the process. Live meetings need people; AI helps prep intake info. | 25% AI helps |
| Counsel clients on personal and family financial problems, such as excessive spending or borrowing of funds. Personal financial counseling needs empathy and trust; AI supports prep. | 25% AI helps |
| Set credit policies, credit lines, procedures and standards in conjunction with senior managers. Policy setting is strategic; AI can draft options for leadership. | 25% AI helps |
| Supervise loan personnel. Supervising staff is people management needing judgment and presence. | 15% Needs a person |
How loan officers compare
All occupations (923)
Business and financial operations (48)
Pay and outlook in the US
- Median pay
- $76,690 a year, May 2025
- People employed
- 274,330 in the US, May 2025
- Projected change in jobs
- +1.1% from 2024 to 2034
Skills to build
- Negotiate repayment plans with delinquent borrowers by phone
- Meet applicants in person to gather loan file information
- Confer with underwriters to resolve mortgage file problems
- Build payoff and payment schedules in Microsoft Excel
- Present credit policy options to senior managers in PowerPoint
- Hold an NMLS mortgage loan originator license
Safer roles nearby
5 related occupations with lower scores.
Questions about loan officers and AI
Will AI replace loan officers?
Partly. About 5 in 10 working hours go to tasks AI can already do, mostly keeping account records current and computing payment schedules. Applicant meetings, repayment talks with delinquent borrowers, and credit policy work stay with people.
Which loan officer tasks is AI taking over?
Account record updates, payment schedule math, and billing checks are moving first. Account records and payment schedules each score 85 on exposure because they follow fixed rules that software runs well. AI handles the calculation, and staff review the exceptions.
Which loan officer tasks stay with people?
Supervising loan staff scores lowest on exposure, at 15, because it needs judgment and presence. Meeting applicants and counseling clients on family money problems follow at 25, since live conversations and trust depend on people.
How do loan officers stay valuable?
Spend more hours on applicant meetings, repayment talks with delinquent borrowers, and credit policy with senior managers. Use Microsoft Excel to check every payment schedule AI produces, and bring policy options to leadership in Microsoft PowerPoint. Keep your NMLS mortgage loan originator license current.
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