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Washington's Proposed "Prevent Bias in Algorithms Act" May Favor Human Judgment Over Machine Decisions

Discriminatory algorithms under scrutiny: D.C. Council deliberates on the Stop Discrimination by Algorithms Act, an initiative proposed by D.C. attorney general Karl Racine last December, aimed at preventing organizations from utilizing specific data types in algorithmic decision-making to...

Washington's Proposed "Prevent Bias in Algorithmic Decision-Making Act" Favors Human Judgment Over...
Washington's Proposed "Prevent Bias in Algorithmic Decision-Making Act" Favors Human Judgment Over Machine Algorithms

Washington's Proposed "Prevent Bias in Algorithms Act" May Favor Human Judgment Over Machine Decisions

The D.C. Council has discussed a new piece of legislation, the Stop Discrimination by Algorithms Act, which aims to regulate the use of algorithmic decision-making in businesses. Proposed by D.C. attorney general Karl Racine last December, the Act seeks to prevent discrimination in key life opportunities such as employment, housing, and credit, based on protected traits like race, gender, disability, and more.

The Act applies to any organization that meets at least one of the following conditions: has personal information on more than 25,000 DC residents; has greater than $15 million in average revenue for the prior three years; is a data broker; or is a service provider that provides algorithmic decision-making to others.

The Act consists of four main provisions. First, it prohibits organizations from using algorithms to discriminate against individuals in certain situations. Second, organizations must provide detailed documentation on how they use personal information in AI-enabled algorithmic decision-making. Third, annual audits of algorithmic decision-making, including for disparate-impact risks, are required. Fourth, the Act establishes enforcement mechanisms, empowering the D.C. attorney general to investigate potential violations and seek fines, damages, restitution, and other relief.

Organizations must also provide a notice to individuals before making any algorithmic decision, as well as a separate notice if they take any adverse action against them. This notice requirement is not limited to decisions based on protected traits.

The Act aims to prohibit organizations from using certain types of data in algorithmic decision-making to prevent discrimination. However, critics argue that the Act may unintentionally discourage the use of AI, especially for organizations serving D.C. residents. They contend that the best way to prevent discrimination in the digital economy is to strengthen the enforcement of anti-discrimination laws, not create a regulatory environment that discriminates against the use of algorithms.

The private right of action in the Act allows individuals to bring civil suits against organizations that violate the law, which could lead to a flood of frivolous lawsuits. The audit trail created by this provision must document each type of algorithmic decision-making process, the data used, data used to train the algorithm, test results, and methodology.

The Act could keep consumer prices higher than they could be by discouraging the use of AI for automation and decision-making. It could also result in more consumers being denied access to important life opportunities due to its potential to reduce the use of AI and increase human bias in decision-making.

Despite the challenges and criticisms, the Stop Discrimination by Algorithms Act represents a significant step towards addressing the growing concern over algorithmic discrimination and ensuring fairness and transparency in the use of AI in the D.C. market. As the Act moves forward, it will be important to strike a balance between regulation and innovation, protecting consumers while not stifling the potential benefits that AI can bring.

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  1. The D.C. Council is discussing a new piece of legislation, the Stop Discrimination by Algorithms Act, aimed at regulating algorithmic decision-making in businesses to prevent discrimination in key life opportunities like employment, housing, and credit based on protected traits.
  2. The Act applies to any organization that has personal information on more than 25,000 DC residents, has greater than $15 million in average revenue for the prior three years, is a data broker, or is a service provider that provides algorithmic decision-making to others.
  3. The Act includes four main provisions: prohibiting organizations from using algorithms to discriminate, requiring detailed documentation, mandating annual audits, and establishing enforcement mechanisms for potential violations.
  4. Organizations must provide a notice to individuals before making algorithmic decisions and a separate notice if they take adverse action, and the Act aims to prohibit certain types of data usage in algorithmic decision-making to prevent discrimination.
  5. Critics argue that the Act may unintentionally discourage the use of AI, especially for organizations serving D.C. residents, and that the best way to prevent discrimination in the digital economy is to strengthen the enforcement of anti-discrimination laws.
  6. The Act allows individuals to bring civil suits against organizations that violate the law, may keep consumer prices higher due to discouraging AI use for automation, and could potentially deny consumers access to important life opportunities due to reduced AI use and increased human bias in decision-making. However, it represents a significant step towards addressing algorithmic discrimination and ensuring fairness and transparency in the use of AI in the D.C. market.

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