
AI outperforms traditional models in bankruptcy forecasting
Published on: Sept. 11, 2025, 11:10 p.m. | Source: Devdiscourse
Bankruptcy prediction has traditionally relied on statistical approaches such as Altman’s Z-score, which use financial ratios to assess insolvency risks. While these models provide useful indicators, they are linear in nature and struggle to capture the complexity of corporate financial health across diverse industries and market conditions.