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MODULE 6.1

Algorithmic Biases: When AI Inherits Our Prejudices

ProPublica, MIT Media Lab, Amazon · Discrimination encoded in data

6 topics ~30 min Advanced
DATA HISTORICALS racial discrimination gender, class trains ML ALGORITHM optimizes the metric encodes patterns amplifies bias decides DECISION amplified bias credit denied trapped for no reason position rejected IMPACT SOCIAL inequality exclusion injustice feedback loop: impact generates new biased data ALGORITHMIC BIAS CYCLE
1

What algorithmic biases are

Algorithmic biases occur when artificial intelligence systems trained on historical data reproduce and amplify patterns of discrimination present in that data. The algorithm doesn’t “invent” prejudice: it detects it as a statistical pattern in the training data and mathematically encodes it as a decision rule.

If a hiring database shows that, historically, 85% of the engineers hired were white men, the algorithm learns that “white man” is a positive predictor of “good engineer.” Not because it is true, but because the data reflects an unequal social structure. AI inherits discrimination as if it were objective information.

Fundamental concept

Algorithmic bias isn’t a bug: it’s a direct consequence of training models on data that reflects an unequal society. AI isn’t neutral. It’s as biased as the data that feeds it.

Sources of bias in the data

  • ✗Hiring data reflecting decades of gender discrimination
  • ✗Police records with over-policing in Black neighborhoods
  • ✗Image datasets dominated by white male faces
  • ✗Credit histories that penalize marginalized populations

What the algorithm does with this

  • ✗Encodes correlations as decision rules
  • ✗Treats historical discrimination as an “objective pattern”
  • ✗Operates at a scale and speed humans cannot match
  • ✗Creates an appearance of scientific objectivity for biased decisions

Data bias

Data reflects inequality

Selection bias

Unrepresentative sample

Amplification

Industrial scale

Feedback loop

Decision creates more bias

2

COMPAS: criminal recidivism prediction

In 2016, the news organization ProPublica published an investigation that shook up the debate about AI and justice. They analyzed COMPAS (Correctional Offender Management Profiling for Alternative Sanctions), an algorithm used in U.S. courts to predict the likelihood that defendants would reoffend. Judges used the result to make decisions about bail, sentencing, and parole.

The investigation revealed that COMPAS classified Black defendants as "high risk" almost twice as often as white defendants, even when controlling for objective criminal factors (type of crime, history, age). False positives (classifying someone as high risk who did not reoffend) were disproportionately higher for Black defendants: 44.9% compared with 23.5% for white defendants.

Timeline of the COMPAS case

1998: Northpointe creates COMPAS, marketed as an "objective" risk assessment tool

2013-2015: Use expands to dozens of jurisdictions in the U.S.

May 2016: ProPublica publishes "Machine Bias," analyzing 7,000 defendants in Broward County, Florida

Result: Black people classified as high risk at 2x the rate. False positives: 44.9% (Black people) vs. 23.5% (white people)

2016+: Academic debate reveals that different definitions of "fairness" are mathematically incompatible

The crucial detail

COMPAS did not use the variable "race" directly. But it used dozens of variables correlated with race (neighborhood, employment, education, family history) that function as proxies. Removing the explicit variable does not solve the problem.

ProPublica

Machine Bias, 2016

False positive

44.9% Black vs. 23.5%

Risk score

1-10, decide freedom

7,000 defendants

Broward County, FL

3

Facial recognition and differential error

In 2018, Joy Buolamwini and Timnit Gebru published the study “Gender Shades” through the MIT Media Lab. They tested three commercial facial recognition systems (Microsoft, IBM, Face++) and found dramatic disparities: the error rate for dark-skinned women reached 34.7%, while for light-skinned men it was below 1%.

The cause was straightforward: the datasets used to train these systems were composed mostly of white male faces. The algorithm had simply seen few Black women's faces during training, so it didn't know how to recognize them. It wasn't malicious: it was structural negligence in data curation.

Error rates by group (Gender Shades)

  • ✓White men: <1% error
  • ✗White women: ~7% error rate
  • ✗Black men: ~12% error
  • ✗Black women: up to 34.7% error rate

Where this bias causes real harm

  • ✗Police surveillance: misidentification leads to wrongful arrests
  • ✗Boundary control: denied entry due to system failure
  • ✗Access to services: facial recognition fails for dark skin
  • ✗Automated prejudice: at scale, with no human recourse

Algorithmic intersectionality

The error wasn’t just about race or gender in isolation: it was about their intersection. Black women were affected more because they were at the intersection of two groups underrepresented in the data. The concept of intersectionality (Kimberlé Crenshaw) applies directly to AI.

Gender Shades

Buolamwini & Gebru

34.7%

The error involving Black women

Dataset bias

White faces dominate

MIT 2018

Media Lab

4

Hiring algorithms: the Amazon case

In 2018, Reuters revealed that Amazon had developed and then scrapped an AI tool for résumé screening. Trained on the previous 10 years of hiring data, the system learned to systematically penalize résumés with indicators of female gender: the name of a women’s college, participation in women’s clubs, or even the word “women’s” on the résumé.

The logic was simple and devastating: since the vast majority of engineers hired by Amazon historically were men, the algorithm learned that "being a man" was a positive predictor of hiring. Not because men were better engineers, but because the hiring pipeline had historically favored men. The AI optimized the existing bias.

The feedback loop problem

If past hiring data shows 85% men, AI favors men. With AI doing the selecting, the share of men hired rises to 90%. The next model, trained on this new data, favors men even more. The bias grows with every cycle.

Lesson from the Amazon case

Amazon tried to fix this by removing gender variables. It didn't work. The algorithm found proxies: type of university, extracurricular activities, language patterns. Discrimination finds indirect paths.

Amazon 2018

Hiring AI

10 years

From biased data

Proxy

Surrogate variable

Discarded

Impossible to correct

5

Why correction is difficult

The naive solution seems obvious: just remove protected variables (race, gender, religion) from the training data. This approach, called “fairness through unawareness,” systematically fails. The reason is that the entire social structure is correlated: ZIP code correlates with race (because of residential segregation), school type correlates with social class, and language patterns correlate with ethnicity.

These correlated variables function as proxies: they replace the protected variable without the developer realizing it. A credit algorithm that uses ZIP code as a variable is, in practice, using race as a predictor, because decades of redlining (denying mortgage credit to Black neighborhoods) created an almost perfect correspondence between ZIP code and racial composition.

Correction attempts and their limits

Remove variable: Remove race/gender from the data. Failure: proxies take their place.

Balance data: Equalize the sample by group. Problem: this can distort the real distribution.

Post-processing: Adjust results to equalize. Dilemma: which metric should be equalized?

Underlying problem: Inequality is in the data because it's in society. A standalone technical solution won't solve a social problem.

Digital redlining

The term “redlining” comes from the practice in the US during the 1930s–60s of marking Black neighborhoods in red on bank maps and denying them credit. Today, algorithms do the same thing using ZIP codes, schools, and consumption patterns as proxies for race.

Proxies

Surrogate variables

Redlining

Digital and historical

Correlation

ZIP code = race (in the U.S.)

Unawareness

Ignoring doesn’t solve it

6

Fairness in AI: incompatible definitions

The field of fairness in machine learning proposes multiple mathematical definitions of "algorithmic fairness." The three main ones are demographic parity (the same positive decision rate for all groups), equal opportunity (the same true positive rate), and calibration (the same meaning of the score for all groups).

In 2017, Alexandra Chouldechova demonstrated mathematically that when the base rate of an event differs between groups (e.g., different recidivism rates between racial groups for socioeconomic reasons), it is impossible to satisfy calibration and equal error rates at the same time. This isn’t a technical limitation: it’s an impossibility theorem. Every choice of fairness metric is an ethical choice, not just a technical one.

Definitions of fairness

  • ✓Demographic parity: same approval rate for each group
  • ✓Equal opportunity: same rate of correct answers for positives
  • ✓Calibration: score X means the same risk for everyone
  • ✗Impossible to satisfy all simultaneously

Implications of the impossibility theorem

  • ✗There is no "neutral" technical solution
  • ✗Choosing one metric sacrifices another
  • ✗Ethical decisions cannot be delegated to the engineer
  • ✗Society needs to decide what is “fair”

Active research

Fairness in AI is one of the most active fields in contemporary computer science. Conferences such as FAccT (Fairness, Accountability, and Transparency) bring together researchers each year who seek approaches that integrate technical, ethical, legal, and social perspectives.

Chouldechova

Impossibility, 2017

Trade-off

Every metric sacrifices

FAccT

Reference conference

Ethics + Technology

Inseparable

Module 6.1 Summary

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