Racial and other demographic imputation is necessary for many applications, especially in auditing disparities and outreach targeting in political campaigns. The canonical approach is to construct continuous predictions -- e.g., based on name and geography -- and then to $\textit{discretize}$ the predictions by selecting the most likely class (argmax). We study how this practice produces $\textit{discretization bias}$. In particular, we show that argmax labeling, as used by a prominent commercial voter file vendor to impute race/ethnicity, results in a substantial under-count of African-American voters, e.g., by 28.2% points in North Carolina. This bias can have substantial implications in downstream tasks that use such labels. We then introduce a $\textit{joint optimization}$ approach -- and a tractable $\textit{data-driven thresholding}$ heuristic -- that can eliminate this bias, with negligible individual-level accuracy loss. Finally, we theoretically analyze discretization bias, show that calibrated continuous models are insufficient to eliminate it, and that an approach such as ours is necessary. Broadly, we warn researchers and practitioners against discretizing continuous demographic predictions without considering downstream consequences.

As AI systems enter into a growing number of societal domains, these systems increasingly shape and are shaped by user preferences, opinions, and behaviors. However, the design of AI systems rarely accounts for how AI and users shape one another. In this position paper, we argue for the development of formal interaction models which mathematically specify how AI and users shape one another. Formal interaction models can be leveraged to (1) specify interactions for implementation, (2) monitor interactions through empirical analysis, (3) anticipate societal impacts via counterfactual analysis, and (4) control societal impacts via interventions. The design space of formal interaction models is vast, and model design requires careful consideration of factors such as style, granularity, mathematical complexity, and measurability. Using content recommender systems as a case study, we critically examine the nascent literature of formal interaction models with respect to these use-cases and design axes. More broadly, we call for the community to leverage formal interaction models when designing, evaluating, or auditing any AI system which interacts with users.

As AI technology advances rapidly, concerns over the risks of bigness in digital markets are also growing. The EU's Digital Markets Act (DMA) aims to address these risks. Still, the current framework may not adequately cover generative AI systems that could become gateways for AI-based services. This paper argues for integrating certain AI software as core platform services and classifying certain developers as gatekeepers under the DMA. We also propose an assessment of gatekeeper obligations to ensure they cover generative AI services. As the EU considers generative AI-specific rules and possible DMA amendments, this paper provides insights towards diversity and openness in generative AI services.