Reviewing AI Projects For Ethical Concerns

The guide "AI Fairness in Practice" by The Alan Turing Institute from 2023 covers the concept of fairness in AI/ML contexts. The fairness paper is part of the AI Ethics and Governance in Practice Program (link: https://lnkd.in/gvYRma_R). The paper dives deep into various types of fairness: DATA FAIRNESS includes: - representativeness of data samples, - collaboration for fit-for-purpose and sufficient data quantity, - maintaining source integrity and measurement accuracy, - scrutinizing timeliness, and - relevance, appropriateness, and domain knowledge in data selection and utilization. APPLICATION FAIRNESS involves considering equity at various stages of AI project development, including examining real-world contexts, addressing equity issues in targeted groups, and recognizing how AI model outputs may shape decision outcomes. MODEL DESIGN AND DEVELOPMENT FAIRNESS involves ensuring fairness at all stages of the AI project workflow by - scrutinizing potential biases in outcome variables and proxies during problem formulation, - conducting fairness-aware design in preprocessing and feature engineering, - paying attention to interpretability and performance across demographic groups in model selection and training, - addressing fairness concerns in model testing and validation, - implementing procedural fairness for consistent application of rules and procedures. METRIC-BASED FAIRNESS utilizes mathematical mechanisms to ensure fair distribution of outcomes and error rates among demographic groups, including: - Demographic/Statistical Parity: Equal benefits among groups. - Equalized Odds: Equal error rates across groups. - True Positive Rate Parity: Equal accuracy between population subgroups. - Positive Predictive Value Parity: Equal precision rates across groups. - Individual Fairness: Similar treatment for similar individuals. - Counterfactual Fairness: Consistency in decisions. The paper further covers SYSTEM IMPLEMENTATION FAIRNESS, incl. Decision-Automation Bias (Overreliance and Overcompliance), Automation-Distrust Bias, contextual considerations for impacted individuals, and ECOSYSTEM FAIRNESS. -- Appendix A (p 75) lists Algorithmic Fairness Techniques throughout the AI/ML Lifecycle, e.g.: - Preprocessing and Feature Engineering: Balancing dataset distributions across groups. - Model Selection and Training: Penalizing information shared between attributes and predictions. - Model Testing and Validation: Enforcing matching false positive/negative rates. - System Implementation: Allowing accuracy-fairness trade-offs. - Post-Implementation Monitoring: Preventing model reliance on sensitive attributes. -- The paper also includes templates for Bias Self-Assessment, Bias Risk Management, and a Fairness Position Statement. -- Link to authors/paper: https://lnkd.in/gczppH29 #AI #Bias #AIfairness

✳ Bridging Ethics and Operations in AI Systems✳ Governance for AI systems needs to balance operational goals with ethical considerations. #ISO5339 and #ISO24368 provide practical tools for embedding ethics into the development and management of AI systems. ➡Connecting ISO5339 to Ethical Operations  ISO5339 offers detailed guidance for integrating ethical principles into AI workflows. It focuses on creating systems that are responsive to the people and communities they affect. 1. Engaging Stakeholders  Stakeholders impacted by AI systems often bring perspectives that developers may overlook. ISO5339 emphasizes working with users, affected communities, and industry partners to uncover potential risks and ensure systems are designed with real-world impact in mind. 2. Ensuring Transparency  AI systems must be explainable to maintain trust. ISO5339 recommends designing systems that can communicate how decisions are made in a way that non-technical users can understand. This is especially critical in areas where decisions directly affect lives, such as healthcare or hiring. 3. Evaluating Bias  Bias in AI systems often arises from incomplete data or unintended algorithmic behaviors. ISO5339 supports ongoing evaluations to identify and address these issues during development and deployment, reducing the likelihood of harm. ➡Expanding on Ethics with ISO24368  ISO24368 provides a broader view of the societal and ethical challenges of AI, offering additional guidance for long-term accountability and fairness. ✅Fairness: AI systems can unintentionally reinforce existing inequalities. ISO24368 emphasizes assessing decisions to prevent discriminatory impacts and to align outcomes with social expectations.  ✅Transparency: Systems that operate without clarity risk losing user trust. ISO24368 highlights the importance of creating processes where decision-making paths are fully traceable and understandable.  ✅Human Accountability: Decisions made by AI should remain subject to human review. ISO24368 stresses the need for mechanisms that allow organizations to take responsibility for outcomes and override decisions when necessary. ➡Applying These Standards in Practice  Ethical considerations cannot be separated from operational processes. ISO24368 encourages organizations to incorporate ethical reviews and risk assessments at each stage of the AI lifecycle. ISO5339 focuses on embedding these principles during system design, ensuring that ethics is part of both the foundation and the long-term management of AI systems. ➡Lessons from #EthicalMachines  In "Ethical Machines", Reid Blackman, Ph.D. highlights the importance of making ethics practical. He argues for actionable frameworks that ensure AI systems are designed to meet societal expectations and business goals. Blackman’s focus on stakeholder input, decision transparency, and accountability closely aligns with the goals of ISO5339 and ISO24368, providing a clear way forward for organizations.

You’re hired as a GRC Analyst at a fast-growing fintech company that just integrated AI-powered fraud detection. The AI flags transactions as “suspicious,” but customers start complaining that their accounts are being unfairly locked. Regulators begin investigating for potential bias and unfair decision-making. How you would tackle this? 1. Assess AI Bias Risks • Start by reviewing how the AI model makes decisions. Does it disproportionately flag certain demographics or behaviors? • Check historical false positive rates—how often has the AI mistakenly flagged legitimate transactions? • Work with data science teams to audit the training data. Was it diverse and representative, or could it have inherited biases? 2. Ensure Compliance with Regulations • Look at GDPR, CPRA, and the EU AI Act—these all have requirements for fairness, transparency, and explainability in AI models. • Review internal policies to see if the company already has AI ethics guidelines in place. If not, this may be a gap that needs urgent attention. • Prepare for potential regulatory inquiries by documenting how decisions are made and if customers were given clear explanations when their transactions were flagged. 3. Improve AI Transparency & Governance • Require “explainability” features—customers should be able to understand why their transaction was flagged. • Implement human-in-the-loop review for high-risk decisions to prevent automatic account freezes. • Set up regular fairness audits on the AI system to monitor its impact and make necessary adjustments. AI can improve security, but without proper governance, it can create more problems than it solves. If you’re working towards #GRC, understanding AI-related risks will make you stand out.