BLG Development Finance Chairman Peter Wade has highlighted the potential for artificial intelligence to improve decision-making across the development finance, property and lending sectors, while calling for stronger governance, transparency and human oversight.
Responding to themes raised in Pope Leo XIV’s recent encyclical Magnifica Humanitas: On Safeguarding the Human Person in the Time of Artificial Intelligence, Wade said the finance sector must ensure AI is used to support better decision-making while preserving the judgement, accountability and trust that underpin responsible lending.
“Technology can help us move faster, but speed is not the same as wisdom.
“AI may assist in reviewing complex information, but it should not remove the need for experienced people to interpret it.”
Wade emphasised that development finance has a direct impact on SMEs, contractors, families and communities.
“As AI adoption accelerates, lenders must ensure technology strengthens human judgement rather than replacing it.
“Responsible adoption requires lenders to maintain clear human oversight over material decisions, particularly where AI tools are used to support risk assessment, affordability checks or credit processes.”
Gartner research found that 59% of finance leaders reported using AI within their finance functions in 2025, suggesting that for many organisations the debate has shifted from whether to adopt AI to how to adopt it responsibly.
Governance, transparency and accountability
Reflecting on themes raised in Magnifica Humanitas, Wade argued that AI should not be shaped “by the few, for the few”.
“A technology this powerful will affect work, finance, education, public services, communication and even democracy itself.
“It should not be controlled only by a small number of powerful companies, governments or technologists.
“The conversation needs to include business leaders, regulators, policymakers, employees and communities.”
However, according to the UK Business Data Survey 2026, 17% of AI-using businesses reported having no AI policy or guidelines in place, suggesting governance frameworks are not always keeping pace with adoption.
Wade mentions three core principles when handling AI:
Transparent decision‑making
“Trust is central to lending.
“Borrowers may accept difficult decisions when they understand the reasoning.
“They are much less likely to trust a process that feels automated, impersonal or unexplained.”
Clear human accountability
“Distinction matters.
“Businesses that use AI simply to automate judgement may create efficiency in the short term but weaken trust and resilience over time.
“AI can enhance judgement, so it becomes faster, more consistent and more responsive while still preserving the human responsibility at the heart of good decision-making.”
Open explanations for AI‑assisted outcomes
“Borrowers should not be left facing black-box decisions that cannot be explained or challenged.”
AI should support people, not reduce work to cost efficiency
Wade also highlighted the importance of preserving the human value of work, including purpose, identity and contribution.
“AI should not be viewed simply as a tool for cost reduction.
“Used well, it can remove repetitive work, improve consistency and give teams more time to focus on judgement, client relationships and better outcomes.
“It should help people do better, more meaningful and more valuable work.”
