AI & Readiness Disclosure

This disclosure explains, in plain terms, what your Readiness State and Readiness Index are, how ALFRED determines them, and where artificial intelligence is used within the platform.

What Readiness State Means

Readiness State is the governing output of ALFRED’s evaluation across every engine variant. It reflects where a business currently stands against the requirements of the capital opportunities being pursued.

Readiness Index, used in ALFRED’s Small Business platform, combines the readiness score and Readiness State into one user-facing view. It helps the business understand both its current standing and its progress.

How Readiness State Is Determined

Readiness State is determined through defined readiness logic, not by predictive or generative AI. ALFRED evaluates submitted information, verified information, reason codes, and gate criteria to determine the current state and the specific reasons behind it.

This means Readiness State is not an AI-generated prediction or estimate. It is a structured readiness assessment that can be explained, traced, and reviewed.

Where AI Is Used

Artificial intelligence supports specific, bounded functions built around ALFRED’s defined readiness logic:

• Generating personalized, plain-language guidance based on reason codes, including what a readiness gap means and what may resolve it
• Reviewing changes in connected banking, verification, or uploaded information to flag when a Readiness State update may be warranted
• Powering ALFRED Chat, which answers questions in ALFRED’s voice and may reference the business’s current readiness status

In each case, AI helps interpret and communicate ALFRED’s readiness logic. It does not independently determine Readiness State, and its guidance is constrained by ALFRED’s reason code catalog, readiness framework, and platform rules.

Where AI Is Not Used

• Determine Readiness State
• Assign or override reason codes
• Move a file to readiness state without governed data
• Determine when a completed verified file is ready for submission
• Verify source information without submitted, uploaded, connected, or public record support
• Authorize submission or share a completed verified file with a capital provider

AI may help explain readiness findings, summarize information, and support ALFRED Chat. It does not control the readiness decision, override verification requirements, or replace the logic ALFRED uses to determine whether a file is ready to advance.

Institutional Authority Over Financing Decisions

ALFRED determines readiness state and may identify program-fit or eligibility signals based on the information available within the platform. Final lending, financing, eligibility, approval, denial, and terms decisions belong exclusively to the lender, CDFI, or capital provider reviewing the completed verified file.

ALFRED does not approve financing, deny financing, set financing terms, negotiate financing terms, or guarantee any financing outcome.

Explainability and Your Right to Ask

Because Readiness State is produced by a rules-based logic engine rather than a black-box model, every state assignment carries specific reason codes that explain why that state was assigned. You can ask ALFRED Chat, or contact ALFRED directly, to explain any reason code affecting your file.

Changes to This Disclosure

This AI & Readiness Disclosure may be updated periodically to reflect changes in how ALFRED’s logic engine or AI components function. Continued use of ALFRED following any update constitutes acceptance of the revised disclosure. The effective date at the top of this document reflects the most recent revision.