Upstart to Begin National Rollout of AI Auto Loans in Q2 2023

Upstart, a digital consumer lending marketplace, announced plans to expand its AI-powered auto lending platform to dealerships nationwide in the second quarter of 2023. Upstart originally launched its auto lending platform in 2020, and expanded to additional dealers in 2021 and 2022. In Q2 2023, its offerings will become available to all dealers nationwide.

Dealers and lenders turn to AI platforms like Upstart to automate the financing and contracting process, hoping to shorten funding timelines and increase profitability. These technology providers, in part, use automation to decrease the amount of manual effort required to review deal jackets and corresponding ancillary product contracts. According to Auto Finance News, there are more than 40,000 variations of ancillary product contract form numbers and revision dates in the U.S., providing an opportunity for AI to help make the review process more efficient and accurate. AI lending platforms also aim to improve auto loan approval rates and expand access to credit through the use of predictive modeling to assess credit risk.