2020
DOI: 10.1257/pandp.20201035
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The Managerial Effects of Algorithmic Fairness Activism

Abstract: How do ethical arguments affect AI adoption in business? We randomly expose business decision-makers to arguments used in AI fairness activism. Arguments emphasizing the inescapability of algorithmic bias lead managers to abandon AI for manual review by humans and report greater expectations about lawsuits and negative PR. These effects persist even when AI lowers gender and racial disparities and when engineering investments to address AI fairness are feasible. Emphasis on status quo comparisons yields opposi… Show more

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Cited by 14 publications
(4 citation statements)
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“…Instead, we need to consider them vis-a-vis the status quo and available alternatives. For example, a focus on algorithmic fairness might lead people to reject algorithms in the context of recruiting processes, even if the bias introduced by algorithms might be well below that introduced through the stereotypes held by human resources personnel (Cowgill et al, 2020). Hence, we need to ask what the alternatives to data-driven solutions and particular predictive algorithms are, and whether these alternatives serve us better or worse.…”
Section: Discussionmentioning
confidence: 99%
“…Instead, we need to consider them vis-a-vis the status quo and available alternatives. For example, a focus on algorithmic fairness might lead people to reject algorithms in the context of recruiting processes, even if the bias introduced by algorithms might be well below that introduced through the stereotypes held by human resources personnel (Cowgill et al, 2020). Hence, we need to ask what the alternatives to data-driven solutions and particular predictive algorithms are, and whether these alternatives serve us better or worse.…”
Section: Discussionmentioning
confidence: 99%
“…Hence, explanations matter: simply providing information about the accuracy of algorithm is not sufficient to enable observers to accurately judge an algorithm's validity. Indeed, a recent experiment shows that the way an algorithm is explained seems to affect how people perceive it (159).…”
Section: Discussion and Policy Insightsmentioning
confidence: 99%
“…In some contexts, the reduced emotional and social response leads to beneficial outcomes such as, for example, increased disclosure of intimate partner violence if reporting to computers (Ahmad et al, 2009;Humphreys et al, 2011). Moreover, algorithms appear to enjoy the perceived "halo" of scientific authority and objectivity (Cowgill et al, 2020). Users also tend to incorporate recommendations from an algorithm more than those from other humans (Logg et al, 2019;Sele and Chugunova, 2022).…”
Section: Related Literaturementioning
confidence: 99%