According to an article from McKinsey, the adoption of generative AI (gen AI) in credit risk management is gaining momentum, with 20% of surveyed financial institutions already implementing AI solutions. Gen AI applications span client engagement, credit decision-making, portfolio monitoring, and customer assistance, enhancing efficiency and accuracy. However, challenges include risk governance, data quality, and talent acquisition. To overcome these hurdles, financial institutions must establish robust AI frameworks, ensure data integrity, and foster cross-functional collaboration.