Page 3 - AI Vol 2: Risks of AI
P. 3

titles might be used. While these features appear
            neutral,  they can inadvertently  disadvantage
            certain groups. For example, prioritizing 'years of
            experience' heavily could lead to decisions that
            unfairly disfavor younger applicants,  who may
            be equally  skilled  but have  fewer years in the

            workforce.


            The algorithms driving AI systems often assign
            different  weights  to  various  inputs,  influencing
            the outcome. This prioritization, while designed
            to optimize decision-making, can unintentionally
            marginalize  certain  groups. For example,

            consider an AI system used by a public agency
            for allocating community development funds. If       discrimination  can  be  particularly  insidious
            the algorithm prioritizes factors such as historical   because  it  often  goes  unnoticed,  yet  it  can
            tax revenue or past project success rates, it may    have profound impacts  on fairness and equity.
            inadvertently  disadvantage  lower-income  or        Proxy variables are attributes or factors that are
            historically  underfunded communities.  These        not  inherently  discriminatory  but  are  closely
            areas, despite needing more resources, might         correlated  with  protected  characteristics.  For
            receive  less funding because the algorithm          example, an AI system in a public agency might use
            overlooks their potential  for improvement  and      zip code as a factor in decision-making processes,

            focuses on past performance metrics.                 such as allocating  resources or prioritizing
                                                                 service  requests. However, since  zip codes can
            Proxy discrimination  in  AI occurs when an          closely correlate with racial and socioeconomic
            algorithm uses variables that, while not explicitly   demographics, relying heavily on this factor
            related  to protected  characteristics  like race    could lead to decisions that inadvertently favor or
            or  gender,  serve  as  stand-ins  or  proxies  for   disfavor certain groups based on where they live.
            these  characteristics.  This  indirect  form  of

                                                                 AI-driven discriminatory  feedback loops occur
                                                                 when  AI systems, through their decisions and
                AI-DRIVEN DISCRIMINATORY                         actions,  inadvertently  reinforce  and  amplify
                  FEEDBACK LOOPS OCCUR                           existing biases or inequalities.  These feedback
               WHEN AI SYSTEMS, THROUGH                          loops begin when an AI system makes decisions
              THEIR DECISIONS AND ACTIONS,                       based on biased data or criteria. The outcomes of
                INADVERTENTLY REINFORCE
               AND AMPLIFY EXISTING BIASES                       these decisions then become part of the new data
                       OR INEQUALITIES.                          set, which the AI continues to learn from, thereby
                                                                 reinforcing the initial bias. Over time, this cycle





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