How to Tackle Algorithmic Bias: Top 4 Challenges and Solutions

In an era where algorithms govern everything from the content we see online to the loans we apply for, the concept of “neutral“ decision-making is a myth. Moreover, algorithmic bias, an insidious force often lurking beneath our digital lives, shapes our opportunities, defines our interactions, and even molds our perceptions. Consequently, it is a phenomenon that demands our attention, for its impact is far-reaching, touching the lives of individuals and communities in ways we might not even realize.

In this blog, we will cover the following topics:

• What is Algorithmic Bias and How Does It Occur?
• How Does Algorithmic Bias Affect Decision-Making in Various Sectors?
• What are the Consequences of Algorithmic Bias on Marginalized Communities?
• Are There Any Regulations or Guidelines in Place to Address Algorithmic Bias?
• How Can Individuals and Organizations Mitigate Algorithmic Bias?
• Kick-Start Your AI and Machine Learning (ML) Career With Emeritus

What is Algorithmic Bias and How Does It Occur?

Algorithmic bias, also known as algorithmic discrimination, refers to the systematic errors or unfairness that can emerge in the decision-making process of algorithms. To be specific, this bias can manifest in a multitude of ways, from favoring or discriminating against certain groups based on race, gender, or other characteristics to perpetuating existing societal inequalities.

Sources of Algorithmic Bias

1. Historical Data

Algorithms learn from historical data. If this data contains biases, the algorithm may replicate and even amplify them in its outputs.

2. Implicit Human Biases

Developers, consciously or not, may embed their own biases into the algorithm’s design or training data.

3. Feedback Loops

Biases can be reinforced if algorithms are trained on data that reflects biased decisions made by humans.

4. Lack of Diverse Representation

If the team developing the algorithm lacks diversity, it may inadvertently introduce or reinforce biases.

ALSO READ: An 8-Step Guide to Responsible AI: Ethical Issues and Steps to Overcome Them

How Does Algorithmic Bias Affect Decision-Making in Various Sectors?

1. Finance and Lending

Biased algorithms in financial institutions can lead to discriminatory lending practices. For instance, they may result in lower loan approval rates for minority groups. Deloitte emphasizes that the use of artificial intelligence (AI) in financial services introduces new ethical pitfalls, risking unintended biases that are forcing the industry to reflect on the ethics of new models.

2. Hiring and Employment

Algorithms used in recruitment processes may inadvertently perpetuate gender and racial disparities, leading to unequal opportunities for candidates. To illustrate, back in 2017, Amazon’s AI recruiting tool was designed to assess job applications and identify candidates for interviews. It aimed to streamline talent acquisition and minimize human bias. However, the algorithm exhibited bias against women. In fact, this may have stemmed from its training on resumes evaluated by predominantly male human recruiters, inadvertently passing on their bias. As a result, the algorithm systematically penalized terms like “women” and devalued graduates from all-women colleges. Consequently, Amazon decided not to utilize the algorithm for candidate assessment.

3. Criminal Justice and Predictive Policing

Biased algorithms in predictive policing can lead to the over-policing of certain neighborhoods, disproportionately impacting communities of color. For example, PredPol, an algorithm used by various US police departments, aims to forecast future crime locations based on collected data like arrest counts and police calls to mitigate human bias in policing. However, researchers discovered a bias within PredPol. In reality, it consistently directed police to neighborhoods with higher racial minority populations, irrespective of actual crime rates. Ultimately, this was due to a feedback loop: the algorithm predicted more crimes where more police reports were filed. Yet, this might have been influenced by existing human bias, leading to a cycle of reinforcement.

4. Health Care and Treatment Recommendations

Algorithms used in health care may recommend different treatments for different demographic groups, leading to disparities in care. For instance, a widely used algorithm in American hospitals can inadvertently reinforce racial biases. This algorithm, applied to over 200 million individuals, aimed to predict patients in need of extra medical attention based on their health care expenditure history. However, it didn’t account for the differing ways black and white patients access health care. Research from 2019 highlights that black patients often opt for immediate interventions like emergency hospital visits, even when exhibiting signs of severe illnesses. This led to lower risk scores for black patients compared to their white counterparts, equating them with healthier white individuals in terms of costs. As a result, fewer black patients qualified for extra care despite similar needs to white patients.

5. Education and Admissions

Algorithms employed in educational institutions for admissions or placement may inadvertently favor certain demographics, potentially excluding deserving candidates. This can hinder the pursuit of education as a pathway to social mobility. For example, Children from Black and Latino or Hispanic communities, who are frequently disadvantaged in terms of digital access, will experience heightened disparities if we excessively digitize education without addressing the potential biases of predominantly white developers behind AI systems. Moreover, the effectiveness of AI hinges on the knowledge and perspectives of its creators. Consequently, their biases can result in both technological shortcomings and magnified biases in reality.

6. Social Media and Content Curation

Algorithms on social media platforms determine the content users see, potentially reinforcing existing biases or echo chambers. This can shape public opinion and perceptions, influencing societal discourse. For example, social media platforms employ AI algorithms to analyze and filter images for potentially explicit or violent content. But, in a recent investigation by The Guardian, AI expert Hilke Schellmann and researcher Gianluca Mauro discovered that these tools tend to rate photos of women in regular settings as more sexually suggestive than those of men, particularly if the images involve features like nipples, pregnant bellies, or exercise.

As part of the experiment, Mauro even subjected his own images to this analysis. Surprisingly, being shirtless didn’t significantly affect his “suggestiveness” score, but wearing a bra dramatically raised it from 22% to 97%. In addition, the accompanying quiz revealed that images of women in everyday situations are often rated as more sexually suggestive compared to similar images of men.

7. Insurance and Risk Assessment

Biased algorithms in insurance can lead to differential pricing or denial of coverage based on demographic factors. As a result, this can leave certain groups with limited access to crucial insurance services. Moreover, using an underwriting model designed for one state to inform decisions in another, relying on past crime data for fraud detection, or using historical weather data to forecast climate risk are common scenarios in the insurance industry. These practices, however, can result in inequitable premiums and flawed risk assessments.

8. Autonomous Systems and Robotics

In sectors like autonomous vehicles or robotics, biased algorithms can lead to unequal outcomes, potentially endangering lives or perpetuating stereotypes. For example, to function effectively, an autonomous car requires substantial training to interpret collected data and make appropriate decisions in diverse traffic scenarios. In reality, individuals make moral choices, such as a driver stopping abruptly to avoid hitting a jaywalker, prioritizing the pedestrian’s safety over their own. Likewise, consider a scenario with an autonomous car lacking functioning brakes, hurtling toward a grandmother and a child. A slight deviation could save one of them. In this instance, it is not a human driver making the decision but rather the car’s algorithm. At this critical juncture, the question arises: who should it prioritize, the grandmother or the child? Is there only one correct answer? This ethical dilemma underscores the crucial role of ethics in technological development.

ALSO READ: Examples of Artificial Intelligence (AI) in 7 Industries 

What are the Consequences of Algorithmic Bias on Marginalized Communities?

1. Reinforcing Inequality

Algorithmic bias exacerbates existing inequalities. For marginalized communities, moreover, who are already facing barriers, these biases act as additional hurdles in accessing resources, opportunities, and fair treatment.

2. Undermining Trust in Institutions

When individuals experience bias from algorithmic systems, it erodes trust in the institutions employing them, leading to a breakdown in societal cohesion.

3. Legal and Ethical Implications

Biased algorithms can lead to legal and ethical challenges, potentially resulting in lawsuits and reputational damage for organizations.

4. Exacerbating Social Divides

Algorithmic bias can lead to a further divide between privileged groups and marginalized communities, perpetuating social injustices.

ALSO READ: How Does the Inclusion of Ethics & Values Aid Innovation Technology?

Are There Any Regulations or Guidelines in Place to Address Algorithmic Bias?

Several countries have begun implementing regulations and guidelines to address algorithmic bias, aiming to ensure fairness and transparency in automated decision-making systems. In essence, these include: 

1. Emerging Regulatory Frameworks

Governments and organizations worldwide are recognizing the urgency to combat algorithmic bias. To that end, they are developing frameworks and guidelines to ensure fairness and transparency in algorithmic decision-making processes.

2. Challenges in Implementation

The practical implementation of these regulations remains a complex task as technology evolves rapidly, often outpacing the development of regulatory measures.

3. Advocacy for Algorithmic Accountability

Many advocacy groups and individuals are pushing for increased accountability and transparency in algorithm development and deployment.

4. Industry-Specific Guidelines

Certain industries, like finance and health care, are establishing industry-specific guidelines to address algorithmic bias and promote fairness.

ALSO READ: Data Privacy, Trust, and Ethical AI: Why is This the Need of the Hour?

How Can Individuals and Organizations Mitigate Algorithmic Bias?

In the face of algorithmic bias, we are not powerless. Through education, awareness, and concerted effort, individuals and organizations can take the following proactive steps to curb bias and promote fairness in our digital interactions:

1. Promoting Awareness and Education

Individuals can advocate for fair and transparent algorithms by raising awareness about the implications of bias in technology. Moreover, education on algorithmic fairness is crucial in effecting change.

2. Inclusive Data Practices

Organizations can actively work toward inclusive data collection, ensuring that diverse perspectives are represented, and data is thoroughly evaluated for potential biases.

3. Continuous Auditing and Assessment

Regular audits and assessments of algorithms can serve as vital tools in identifying and rectifying biases. In the long run, this iterative process is crucial in maintaining algorithmic fairness.

4. Implementing Diversity and Inclusion Policies

Ensuring diverse representation in the development and decision-making processes surrounding algorithms can help mitigate biases.

To delve even deeper into the realm of machine learning fairness, you can read more in this insightful blog.

Kick-Start Your AI and Machine Learning (ML) Career With Emeritus

Understanding and addressing algorithmic bias is critical for creating a more equitable and just society. For that purpose, proactive measures to identify and rectify biases can transform algorithms into tools for positive change rather than perpetrators of existing inequalities. And so, we must equip ourselves with the knowledge and tools to champion fairness and ethics. To that end, Emeritus’ range of comprehensive artificial intelligence and machine learning courses offer a dedicated focus on fairness and ethics in AI. So go on and explore these courses today!

Write to us at content@emeritus.org