Mortgage lenders are rapidly adopting artificial intelligence (AI), but many are still grappling with how to use AI to improve efficiency and responsiveness without weakening the human relationships that drive trust, referrals, and repeat business, according to STRATMOR Group's April Insights Report.
In her featured article, "AI: The GOAT of Your New Mortgage Dream Team," STRATMOR Senior Advisor Sue Woodard cautions that many lenders risk adopting AI too slowly as borrower expectations evolve and productivity gaps widen.
She notes that consumers are already using AI throughout the homebuying journey, often before speaking with a loan officer. STRATMOR’s own MortgageCX data also shows that 36 percent of borrowers begin their home search online, where AI-powered tools are increasingly shaping early decision-making.
“AI adoption is no longer a future-state conversation for the mortgage industry – it is happening right now, across every generation of borrower, every tier of competitor, and every corner of our business operations,” Woodard says. “The question lenders and technology vendors need to answer is not whether to embrace AI, but how to do it in a way that amplifies what makes mortgage professionals irreplaceable: the human connection.”
Woodard outlines five strategies for lenders building AI capabilities, including creating a cross-functional AI task force, prioritizing high-impact use cases, improving data infrastructure, embracing 360-degree change management, and treating AI as an ongoing transformation rather than a one-time project.
Additionally, she also cautions lenders against delegating AI deployments entirely to their technology teams, noting that AI is a business transformation challenge that touches every function.
“The question isn’t whether you’ll deploy AI,” Woodard said. “It’s whether you’ll do it with intention: clear on what humans do best, disciplined about where AI adds value, and wise enough to know the difference.”