Alta’s Paul Bent on AI and Its Implications for the Next Generation of Equipment Finance Leaders

As AI and other software tools transform industries across the board, up-and-coming leaders in equipment finance who are concerned about AI “taking over” should take note of certain advantages that machines cannot replicate. These include human intuition, imagination, and connection, according to Paul Bent, senior managing director at The Alta Group and leader of its Legal Services practice. In a recent article in the Monitor, he explores the impact of ever-evolving technology on equipment leasing and finance. 

“Fast-moving developments are understandably leading to anxieties about job security, having to learn new methods and practices, and somehow coming to grips with new realities in the workplace,” Bent writes. “Looking beyond the immediate anxiety, however, and assessing how the equipment finance workplace actually functions, it can be said with some certainty that there will always be a need and an opportunity for human skills and knowledge.”  

The Human Factor  

The blinding speed and remarkable accuracy of AI is indisputable, but can it “think” in meaningful ways, Bent asks? Can this technology powered by massive computers figure out the best path forward when confronted with a leadership or operational dilemma?   

“It is not the operation of computers (or of software alone) that is required for making sound business decisions and for providing the appropriate solutions to business problems, no matter how seemingly small they may be,” he says. “It is the participation of human beings, with their vast collective store of knowledge, experience, intuition, and creativity, which is necessary – with the support of AI technology – for the advancement and management of the world around us.” 

This is not a new issue, Bent writes. But it’s one that continues to be debated and scrutinized as equipment finance professionals seek tools that ensure the most effective management and operation of business methods and objectives into the future.  

Eye on the Prize   

The ultimate goal, he says, is a workplace where human attributes enhance rather than compete with the growing use of AI. That is critical to success in such areas as sales and business development, customer service, credit and underwriting, risk management, and asset management. 

Risk, for example, takes many forms in equipment finance, from credit risk to asset risk to fraud risk. 

“It is the imagination and intuition of actual human actors that will be relied upon, at least into the foreseeable future, for the final determination of types and degrees of risk,” Bent writes.   

Here to Stay 

While AI and automated large language models have revolutionized the industry, they are not a replacement for, but rather powerful tools that can enhance, the more traditional side of the business equation, according to Bent. 

“There is no AI-driven substitute for ‘kicking the tires’ – engaging in real-world inspections and reviews, interviewing target industry participants and relying on experience and insight to fine-tune the basic information available through a computer algorithm,” he writes. 

The industry’s future leaders, many of whom are already skilled in the technical aspects of AI, must also address real-world requirements that often depend strongly upon hands-on experience. 

“The future of equipment finance will be in the hands of thoughtful, imaginative, and intuitive professionals, not robots,” Bent says.  

Read the full article here. 

Paul Bent is senior managing director at The Alta Group and leader of its Legal Services practice. He offers clients the benefit of several decades of direct management and practical experience in virtually every critical aspect of equipment leasing management, transactions, operations, and legal affairs.