New Federal and State Regulation of Corporate AI Systems: Mitigating Bias in Automated Decision-Making

Description

More businesses are using AI and algorithms to drive decision-making processes. Congress passed the National Artificial Intelligence Initiative Act, which creates numerous new initiatives, committees, and workflows on AI, with the goal of preparing the federal workforce, conducting and funding research, and identifying and mitigating risks, particularly the potential for unintended bias.

In the absence of regulatory guidance and standards, industry and legal stakeholders are struggling with how to address concerns about algorithmic fairness, leading to increased regulatory and reputational risk. Attorneys must understand the risks related to automated decision-making and stay ahead of the regulatory landscape. However, legal is not the only stakeholder--engineers, economists, data scientists, ethicists, and others might spot different issues. Creating diverse teams with different viewpoints and life experiences is essential to any effort to mitigate bias.

One cause of bias might be a lack of diverse representation in the data set used to train the algorithm. But even if the data set is diverse, it might replicate historical patterns of bias. Counsel needs to develop and document programs, policies, and procedures based on questioning what the AI is determining and what data errors may be created.

Counsel should consider effective ways to test the algorithm before deploying it and consider having periodic audits to ensure biased outcomes are not an unintended result.

Listen as our expert panel discusses the National Artificial Intelligence Initiative Act and other proposed legislation, how counsel with other stakeholders can develop and alter an algorithm as necessary to address unintended bias, and what the future of AI in business decision-making may entail.