The Managerial Effects of Algorithmic Fairness Activism
AEA Papers and Proceedings
vol. 110,
May 2020
(pp. 85-90)
Abstract
How do ethical arguments affect AI adoption in business? We randomly expose business decision-makers to arguments used in AI fairness activism. Arguments emphasizing the inescapability of algorithmic bias lead managers to abandon AI for manual review by humans and report greater expectations about lawsuits and negative PR. These effects persist even when AI lowers gender and racial disparities and when engineering investments to address AI fairness are feasible. Emphasis on status quo comparisons yields opposite effects. We also measure the effects of "scientific veneer" in AI ethics arguments. Scientific veneer changes managerial behavior but does not asymmetrically benefit favorable (versus critical) AI activism.Citation
Cowgill, Bo, Fabrizio Dell'Acqua, and Sandra Matz. 2020. "The Managerial Effects of Algorithmic Fairness Activism." AEA Papers and Proceedings, 110: 85-90. DOI: 10.1257/pandp.20201035Additional Materials
JEL Classification
- C45 Neural Networks and Related Topics
- D63 Equity, Justice, Inequality, and Other Normative Criteria and Measurement
- J15 Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
- J16 Economics of Gender; Non-labor Discrimination
- M14 Corporate Culture; Diversity; Social Responsibility
- M15 IT Management