AI and Generative AI are used to optimize commercial loan pricing, replacing outdated grid systems that fail to reflect market conditions. By simulating loan negotiations between a virtual client and a virtual RM, the AI model suggests prices that maximize risk-adjusted returns. This approach, validated using real and synthetic data, led to a 26% increase in expected revenues, targeting loans where price adjustments would have the most impact while maintaining high acceptance probabilities. This AI-driven strategy offers banks a significant improvement over traditional cost-plus pricing methods.

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