HBR Guide to AI Basics for Managers

CHAPTER 17

AI Can Help Address Inequity—If Companies Earn Users’ Trust

by Shunyuan Zhang, Kannan Srinivasan, Param Vir Singh, and Nitin Mehta

Unfortunately, the benefits that AI will bring may not be enjoyed equally. Algorithmic bias—when algorithms produce discriminatory outcomes against certain categories of individuals, typically minorities and women—may also worsen existing social inequalities. From the recidivism prediction algorithm used in courts to the medical care prediction algorithm used by hospitals, studies have found evidence of algorithmic biases that make racial disparities worse for those impacted, not better.

Many firms have put considerable effort into combating algorithmic bias in their management and services. They often ...