Despite the rapid adoption of technology in human resource departments, there is little empirical work that examines the potential challenges of algorithmic decision-making in the recruitment process. In this paper, we take the perspective of job applicants and examine how they perceive the use of algorithms in selection and recruitment. Across four studies on Amazon Mechanical Turk, we show that people in the role of a job applicant perceive algorithm-driven recruitment processes as less fair compared to human only or algorithm-assisted (...) human processes. This effect persists regardless of whether the outcome is favorable to the applicant or not. A potential mechanism underlying algorithm resistance is the belief that algorithms will not be able to recognize their uniqueness as a candidate. Although the use of algorithms has several benefits for organizations such as improved efficiency and bias reduction, our results highlight a potential cost of using them to screen potential employees during recruitment. (shrink)

The advent of intelligent artificial systems has sparked a dispute about the question of who is responsible when such a system causes a harmful outcome. This paper champions the idea that this dispute should be approached as a conceptual engineering problem. Towards this claim, the paper first argues that the dispute about the responsibility gap problem is in part a conceptual dispute about the content of responsibility and related concepts. The paper then argues that the way forward is to evaluate (...) the conceptual choices we have, in the light of a systematic understanding of why the concept is important in the first place—in short, the way forward is to engage in conceptual engineering. The paper then illustrates what approaching the responsibility gap problem as a conceptual engineering problem looks like. It outlines argumentative pathways out of the responsibility gap problem and relates these to existing contributions to the dispute. (shrink)

The increasing implementation of and reliance on machine-learning (ML) algorithms to perform tasks, deliver services and make decisions in health and healthcare have made the need for fairness in ML, and more specifically in healthcare ML algorithms (HMLA), a very important and urgent task. However, while the debate on fairness in the ethics of artificial intelligence (AI) and in HMLA has grown significantly over the last decade, the very concept of fairness as an ethical value has not yet been sufficiently (...) explored. Our paper aims to fill this gap and address the AI ethics principle of fairness from a conceptual standpoint, drawing insights from accounts of fairness elaborated in moral philosophy and using them to conceptualise fairness as an ethical value and to redefine fairness in HMLA accordingly. To achieve our goal, following a first section aimed at clarifying the background, methodology and structure of the paper, in the second section, we provide an overview of the discussion of the AI ethics principle of fairness in HMLA and show that the concept of fairness underlying this debate is framed in purely distributive terms and overlaps with non-discrimination, which is defined in turn as the absence of biases. After showing that this framing is inadequate, in the third section, we pursue an ethical inquiry into the concept of fairness and argue that fairness ought to be conceived of as an ethical value. Following a clarification of the relationship between fairness and non-discrimination, we show that the two do not overlap and that fairness requires much more than just non-discrimination. Moreover, we highlight that fairness not only has a distributive but also a socio-relational dimension. Finally, we pinpoint the constitutive components of fairness. In doing so, we base our arguments on a renewed reflection on the concept of respect, which goes beyond the idea of equal respect to include respect for individual persons. In the fourth section, we analyse the implications of our conceptual redefinition of fairness as an ethical value in the discussion of fairness in HMLA. Here, we claim that fairness requires more than non-discrimination and the absence of biases as well as more than just distribution; it needs to ensure that HMLA respects persons both as persons and as particular individuals. Finally, in the fifth section, we sketch some broader implications and show how our inquiry can contribute to making HMLA and, more generally, AI promote the social good and a fairer society. (shrink)

Machine learning methods have been used in multifactor stock strategy for years. This paper uses three machine learning methods and linear regression method to find the most appropriate approach. First, a framework is established and 10 style factors and 30 industry factors are chosen. Second, four methods are used to forecast portfolio returns and compared by predicting returns, successful rate, and Sharpe ratio. Finally, this paper draws conclusion. The main findings are as follows: the support vector regression has the most (...) stable successful rate for predicting, while ridge regression and linear regression have the most unstable successful rate with more extreme cases; algorithm of support vector regression fitting higher-degree polynomials in Chinese A-share market is optimized, compared with the traditional linear regression both in terms of stock return and retracement control; the results of support vector regression significantly outperforming the CSI 500 index prove further. (shrink)

Fairness of Artificial Intelligence decisions has become a big challenge for governments, companies, and societies. We offer a theoretical contribution to consider AI ethics outside of high-level and top-down approaches, based on the distinction between “reality” and “world” from Luc Boltanski. To do so, we provide a new perspective on the debate on AI fairness and show that criticism of ML unfairness is “realist”, in other words, grounded in an already instituted reality based on demographic categories produced by institutions. Second, (...) we show that the limits of “realist” fairness corrections lead to the elaboration of “radical responses” to fairness, that is, responses that radically change the format of data. Third, we show that fairness correction is shifting to a “domination regime” that absorbs criticism, and we provide some theoretical and practical avenues for further development in AI ethics. Using an ad hoc critical space stabilized by reality tests alongside the algorithm, we build a shared responsibility model which is compatible with the radical response to fairness issues. Finally, this paper shows the fundamental contribution of pragmatic sociology theories, insofar as they afford a social and political perspective on AI ethics by giving an active role to material actors such as database formats on ethical debates. In a context where data are increasingly numerous, granular, and behavioral, it is essential to renew our conception of AI ethics on algorithms in order to establish new models of responsibility for companies that take into account changes in the computing paradigm. (shrink)

The debate about the ethical implications of Artificial Intelligence dates from the 1960s :741–742, 1960; Wiener in Cybernetics: or control and communication in the animal and the machine, MIT Press, New York, 1961). However, in recent years symbolic AI has been complemented and sometimes replaced by Neural Networks and Machine Learning techniques. This has vastly increased its potential utility and impact on society, with the consequence that the ethical debate has gone mainstream. Such a debate has primarily focused on principles—the (...) ‘what’ of AI ethics —rather than on practices, the ‘how.’ Awareness of the potential issues is increasing at a fast rate, but the AI community’s ability to take action to mitigate the associated risks is still at its infancy. Our intention in presenting this research is to contribute to closing the gap between principles and practices by constructing a typology that may help practically-minded developers apply ethics at each stage of the Machine Learning development pipeline, and to signal to researchers where further work is needed. The focus is exclusively on Machine Learning, but it is hoped that the results of this research may be easily applicable to other branches of AI. The article outlines the research method for creating this typology, the initial findings, and provides a summary of future research needs. (shrink)

Why do organizations conduct job interviews? The traditional view of interviewing holds that interviews are conducted, despite their steep costs, to predict a candidate’s future performance and fit. This view faces a twofold threat: the behavioral and algorithmic threats. Specifically, an overwhelming body of behavioral research suggests that we are bad at predicting performance and fit; furthermore, algorithms are already better than us at making these predictions in various domains. If the traditional view captures the whole story, then interviews seem (...) to be a costly, archaic human resources procedure sustained by managerial overconfidence. However, building on T. M. Scanlon’s work, we offer the value of choice theory of interviewing and argue that interviews can be vindicated once we recognize that they generate commonly overlooked kinds of noninstrumental value. On our view, interviews should thus not be entirely replaced by algorithms, however sophisticated algorithms ultimately become at predicting performance and fit. (shrink)

The danger of human operators devolving responsibility to machines and failing to detect cases where they fail has been recognised for many years by industrial psychologists and engineers studying the human operators of complex machines. We call it “the control problem”, understood as the tendency of the human within a human–machine control loop to become complacent, over-reliant or unduly diffident when faced with the outputs of a reliable autonomous system. While the control problem has been investigated for some time, up (...) to this point its manifestation in machine learning contexts has not received serious attention. This paper aims to fill that gap. We argue that, except in certain special circumstances, algorithmic decision tools should not be used in high-stakes or safety-critical decisions unless the systems concerned are significantly “better than human” in the relevant domain or subdomain of decision-making. More concretely, we recommend three strategies to address the control problem, the most promising of which involves a complementary coupling between highly proficient algorithmic tools and human agents working alongside one another. We also identify six key principles which all such human–machine systems should reflect in their design. These can serve as a framework both for assessing the viability of any such human–machine system as well as guiding the design and implementation of such systems generally. (shrink)

Purpose Artificial intelligence (AI) has sparked interest in various areas, including marketing. However, this exhilaration is being tempered by growing concerns about the moral and legal implications of using AI in marketing. Although previous research has revealed various ethical and legal issues, such as algorithmic discrimination and data privacy, there are no definitive answers. This paper aims to fill this gap by investigating AI’s ethical and legal concerns in marketing and suggesting feasible solutions. Design/methodology/approach The paper synthesises information from academic (...) articles, industry reports, case studies and legal documents through a thematic literature review. A qualitative analysis approach categorises and interprets ethical and legal challenges and proposes potential solutions. Findings The findings of this paper raise concerns about ethical and legal challenges related to AI in the marketing area. Ethical concerns related to discrimination, bias, manipulation, job displacement, absence of social interaction, cybersecurity, unintended consequences, environmental impact, privacy and legal issues such as consumer security, responsibility, liability, brand protection, competition law, agreements, data protection, consumer protection and intellectual property rights are discussed in the paper, and their potential solutions are discussed. Research limitations/implications Notwithstanding the interesting insights gathered from this investigation of the ethical and legal consequences of AI in marketing, it is important to recognise the limits of this research. Initially, the focus of this study is confined to a review of the most important ethical and legal issues pertaining to AI in marketing. Additional possible repercussions, such as those associated with intellectual property, contracts and licencing, should be investigated more deeply in future studies. Despite the fact that this study gives various answers and best practices for tackling the stated ethical and legal concerns, the viability and efficacy of these solutions may differ depending on the context and industry. Thus, more research and case studies are required to evaluate the applicability and efficacy of these solutions in other circumstances. This research is mostly based on a literature review and may not represent the experiences or opinions of all stakeholders engaged in AI-powered marketing. Further study might involve interviews or surveys with marketing professionals, customers and other key stakeholders to offer a full knowledge of the practical difficulties and solutions. Because of the rapid speed of technical progress, AI’s ethical and regulatory ramifications in marketing are continually increasing. Consequently, this work should be a springboard for more research and continuing conversations on this subject. Practical implications This study’s findings have several practical implications for marketing professionals. Emphasising openness and explainability: Marketing professionals should prioritise transparency in their use of AI, ensuring that customers are fully informed about data collection and utilisation for targeted advertising. By promoting openness and explainability, marketers can foster customer trust and avoid the negative consequences of a lack of transparency. Establishing ethical guidelines: Marketing professionals need to develop ethical rules for the creation and implementation of AI-powered marketing strategies. Adhering to ethical principles ensures compliance with legal norms and aligns with the organisation’s values and ideals. Investing in bias detection tools and privacy-enhancing technology: To mitigate risks associated with AI in marketing, marketers should allocate resources to develop and implement bias detection tools and privacy-enhancing technology. These tools can identify and address biases in AI algorithms, safeguard consumer privacy and extract valuable insights from consumer data. Social implications This study’s social implications emphasise the need for a comprehensive approach to address the ethical and legal challenges of AI in marketing. This includes adopting a responsible innovation framework, promoting ethical leadership, using ethical decision-making frameworks and conducting multidisciplinary research. By incorporating these approaches, marketers can navigate the complexities of AI in marketing responsibly, foster an ethical organisational culture, make informed ethical decisions and develop effective solutions. Such practices promote public trust, ensure equitable distribution of benefits and risk, and mitigate potential negative social consequences associated with AI in marketing. Originality/value To the best of the authors’ knowledge, this paper is among the first to explore potential solutions comprehensively. This paper provides a nuanced understanding of the challenges by using a multidisciplinary framework and synthesising various sources. It contributes valuable insights for academia and industry. (shrink)

Machine learning-based AI algorithms lack transparency. In this article, I offer an interpretation of AI’s explainability problem and highlight its ethical saliency. I try to make the case for the legal enforcement of a strong explainability requirement: human organizations which decide to automate decision-making should be legally obliged to demonstrate the capacity to explain and justify the algorithmic decisions that have an impact on the wellbeing, rights, and opportunities of those affected by the decisions. This legal duty can be derived (...) from the demands of Rawlsian public reason. In the second part of the paper, I try to show that the argument from the limitations of human cognition fails to get AI off the hook of public reason. Against a growing trend in AI ethics, my main argument is that the analogy between human minds and artificial neural networks fails because it suffers from an atomistic bias which makes it blind to the social and institutional dimension of human reasoning processes. I suggest that developing interpretive AI algorithms is not the only possible answer to the explainability problem; social and institutional answers are also available and in many cases more trustworthy than techno-scientific ones. (shrink)

Data‐driven algorithms are widely used to make or assist decisions in sensitive domains, including healthcare, social services, education, hiring, and criminal justice. In various cases, such algorithms have preserved or even exacerbated biases against vulnerable communities, sparking a vibrant field of research focused on so‐called algorithmic biases. This research includes work on identification, diagnosis, and response to biases in algorithm‐based decision‐making. This paper aims to facilitate the application of philosophical analysis to these contested issues by providing an overview of three (...) key topics: What is algorithmic bias? Why and how can it occur? What can and should be done about it? Throughout, we highlight connections—both actual and potential—with philosophical ideas and concerns. (shrink)

Machine learning (ML) models recently led to major breakthroughs in predictive tasks in the natural sciences. Yet their benefits for the social sciences are less evident, as even high-profile studies on the prediction of life trajectories have shown to be largely unsuccessful – at least when measured in traditional criteria of scientific success. This paper tries to shed light on this remarkable performance gap. Comparing two social science case studies to a paradigm example from the natural sciences, we argue that, (...) in addition to explanation, prediction is an important goal of social science – and we identify constraints that impede pure ML prediction from being successful in that field. As a remedy, we outline elements of an integrative modelling approach that combines explanatory models and predictive ML models. (shrink)

This paper considers challenges resulting from the use of advanced artificial judicial intelligence (AAJI). We argue that these challenges should be considered through the lens of value alignment. Instead of discussing why specific goals and values, such as fairness and nondiscrimination, ought to be implemented, we consider the question of how AAJI can be aligned with goals and values more generally, in order to be reliably integrated into legal and judicial systems. This value alignment framing draws on AI safety and (...) alignment literature to introduce two otherwise neglected considerations for AAJI safety: specification and assurance. We outline diverse research directions and suggest the adoption of assurance and specification mechanisms as the use of AI in the judiciary progresses. While we focus on specification and assurance to illustrate the value of the AI safety and alignment literature, we encourage researchers in law and philosophy to consider what other lessons may be drawn. (shrink)

The problem of fair machine learning has drawn much attention over the last few years and the bulk of offered solutions are, in principle, empirical. However, algorithmic fairness also raises important conceptual issues that would fail to be addressed if one relies entirely on empirical considerations. Herein, I will argue that the current debate has developed an empirical framework that has brought important contributions to the development of algorithmic decision-making, such as new techniques to discover and prevent discrimination, additional assessment (...) criteria, and analyses of the interaction between fairness and predictive accuracy. However, the same framework has also suggested higher-order issues regarding the translation of fairness into metrics and quantifiable trade-offs. Although the tools which have been developed so far are essential to address discrimination encoded in data and algorithms, their integration into society elicits key questions such as: What kind of assumptions and decisions underlies the empirical framework? How do the results of the empirical approach penetrate public debate? What kind of reflection and deliberation should stakeholders have over available fairness metrics? I will outline the empirical approach to fair machine learning, i.e. how the problem is framed and addressed, and suggest that there are important non-empirical issues that should be tackled. While this work will focus on the problem of algorithmic fairness, the lesson can extend to other conceptual problems in the analysis of algorithmic decision-making such as privacy and explainability. (shrink)