The FTC has issued Business Guidance about the use of artificial intelligence (AI), warning marketers about the danger of the potential discriminatory impact of automated decision-making. As the FTC noted, the use of AI "presents risks, such as the potential for unfair or discriminatory outcomes or the perpetuation of existing socioeconomic disparities." To illustrate the risk, the FTC's Guidance cites a study of an algorithm used to target medical interventions to the sickest patients that wound up funneling resources to a healthier, white population, to the detriment of sicker, black patients. The Guidance also cites a number of enforcement actions brought by the FTC and other government agencies under the Fair Credit Reporting Act, the Equal Credit Reporting Act, the Fair Housing Act, and more, where companies have used big data in misleading or discriminatory ways in their advertising, targeting practices or in their other interactions with consumers. To mitigate these risks, the FTC's Guidance recommends that companies using artificial intelligence tools be "transparent, explainable, fair, and empirically sound, while fostering accountability."

Are machines biased? The FTC has issued Business Guidance about the use of artificial intelligence (AI), warning marketers about the danger of the …

Combating bias and creating more inclusive AI is unlikely to succeed unless developers include those people who have been historically excluded or ignored. Advances in automation, machine learning and artificial intelligence (AI) mean we're on the threshold of discoveries that could change human society irreversibly – for better or worse. From AI that sorts CVs and shortlists job applicants, to facial recognition algorithms, these technologies are bringing new efficiencies and reducing errors in both public and private sector decision making. But, increasingly, many of us are becoming aware of the dangers of bias and discrimination inherent in these technologies. A recent MIT study measuring how the technology works on people of different races and gender found that facial recognition AI was less accurate when classifying the faces of people with darker skin.

Advances in automation, machine learning and artificial intelligence (AI) mean we're on the threshold of discoveries that could change human society irreversibly – for better or worse. From AI that sorts CVs and shortlists job applicants, to facial recognition algorithms, these technologies are bringing new efficiencies and reducing errors in both public and private sector decision making. But, increasingly, many of us are becoming aware of the dangers of bias and discrimination inherent in these technologies. A recent MIT study measuring how the technology works on people of different races and gender found that facial recognition AI was less accurate when classifying the faces of people with darker skin. Meanwhile, Amazon scrapped an AI recruitment tool after the company found that it wasn't rating candidates for software developer jobs and other technical posts in a gender-neutral way.

As the old joke goes, on the internet nobody knows you're a dog. But thanks to the rise of artificial intelligence, not only do today's machines know you're a canine, they can tell what color dog you are -- and may treat you differently as a result. AI-driven algorithms impact our lives in countless ways, from the technology that identifies your voice when you call your bank to the algorithms that determine whether you're a good credit risk. It's expected to play an increasingly large role in designing products, identifying potential clients, diagnosing disease and preventing crime. An AI bot may troubleshoot your computer, offer legal advice or teach your kids Spanish.