{"id":1812,"date":"2021-04-26T11:20:43","date_gmt":"2021-04-26T15:20:43","guid":{"rendered":"https:\/\/www.pwvconsultants.com\/blog\/?p=1812"},"modified":"2021-04-26T11:20:45","modified_gmt":"2021-04-26T15:20:45","slug":"computers-are-hard-bias-in-ai-could-bring-ftc-action","status":"publish","type":"post","link":"https:\/\/www.pwvconsultants.com\/blog\/computers-are-hard-bias-in-ai-could-bring-ftc-action\/","title":{"rendered":"Computers Are Hard: Bias in AI Could Bring FTC Action"},"content":{"rendered":"\n<h2 class=\"wp-block-heading\" id=\"h-bias-in-artificial-intelligence-is-a-known-problem-that-researchers-have-been-working-on-for-some-time-the-ftc-is-giving-businesses-an-incentive-to-use-unbiased-ai-suggesting-legal-action-could-be-taken-if-bias-appears-in-ai\">Bias in artificial intelligence is a known problem that researchers have been working on for some time. The FTC is giving businesses an incentive to use unbiased AI, suggesting legal action could be taken if bias appears in AI.<\/h2>\n\n\n\n<p>Computers, smartphones, tablets, IoT devices are pretty commonplace today. Many of us, though, do not think about the complexities that lie within those devices and how they function. Developers understand all too well those complexities, and they understand that they don\u2019t really understand it at all sometimes. When you fix a problem in any other industry, the outcome can be predicted with relative accuracy. Not in technology, though. No, when you fix a coding problem, you have to first test it before it\u2019s deployed because you have no idea what could break. It\u2019s one of the most common reasons for cloud outages. As more businesses seek to use artificial intelligence for data analysis and business efficiency, the FTC has a new warning: Keep the bias out of your AI, or action could be taken.<\/p>\n\n\n\n<p><a href=\"https:\/\/www.pwvconsultants.com\/blog\/artificial-intelligence-machine-learning-help-achieve-sustainability\/\" target=\"_blank\" rel=\"noreferrer noopener\">Artificial intelligence has many uses<\/a>, and with advancements in machine learning, businesses are learning how to make the technology work for them. One of the things we often talk about is the need to have an expert help with complex projects that require a deep level of understanding. It\u2019s been widely reported that there is bias in AI. This is largely due to the data that the ML inside the AI has been trained on, data taken from snippets around the web. It\u2019s a problem that researchers and developers around the world have been working to solve, and the FTC is adding incentive for companies that provide AI and ML training data:<br><br>\u201cDon\u2019t exaggerate what your algorithm can do or whether it can deliver fair or unbiased results,\u201d writes Elisa Jillson, an FTC attorney, <a href=\"https:\/\/www.ftc.gov\/news-events\/blogs\/business-blog\/2021\/04\/aiming-truth-fairness-equity-your-companys-use-ai\" target=\"_blank\" rel=\"noreferrer noopener\">in a blog post<\/a>. \u201cUnder the FTC Act, your statements to business customers and consumers alike must be truthful, non-deceptive, and backed up by evidence. In a rush to embrace new technology, be careful not to over promise what your algorithm can deliver. For example, let\u2019s say an AI developer tells clients that its product will provide \u201c100% unbiased hiring decisions,\u201d but the algorithm was built with data that lacked racial or gender diversity. The result may be deception, discrimination \u2013 and an FTC law enforcement action.\u201d<\/p>\n\n\n\n<p>We are in the midst of a massive social justice movement. It\u2019s not just in the U.S. either, but many countries are acknowledging that racial disparity is a problem. Even FTC chair, Rebecca Slaughter, <a href=\"https:\/\/www.protocol.com\/ftc-bias-ai\" target=\"_blank\" rel=\"noreferrer noopener\">recently said<\/a> that algorithm-based bias is \u201can economic justice issue.\u201d And because of this movement, many businesses are looking to AI to help eradicate bias in the hiring process as well as other areas of data collection and analysis. But if the algorithms in use are biased, those biases can be exaggerated.<\/p>\n\n\n\n<p>The FTC can prosecute companies under the Equal Credit Opportunity Act or the Fair Credit Reporting Act, both of which prohibit decision-making based on race, among other things. They can also prosecute under Section 5 of the FTC Act, which prohibits unfair or deceptive practices.<\/p>\n\n\n\n<p>Here\u2019s the thing that businesses need to remember, and we\u2019ll use an analogy to help. Big tech, big businesses are akin to Shaq. They are dominating, aggressive and quick to market. They can also handle the blowback from the FTC should their product appear biased. Small businesses, startups, non-Fortune 500 companies that want to break into the AI sector should be prepared to proceed more like John Stockton. They can\u2019t just push their product out and be aggressive, acting like Shaq without ensuring quality, because they are much less likely to survive FTC action. Smaller businesses that want to be disruptive in AI and ML need to shift their focus from first-to-market to best-quality-in-market. First-to-market will often be biased, so in order for smaller companies to stay competitive, quality must be a top consideration.<\/p>\n\n\n\n<p>On top of this, businesses which don\u2019t create their own AI or ML and need to purchase it from somewhere, also need to do their due diligence. You can have built this amazing product and the AI\/ML datasets to power it and make it efficient, but if that AI turns out to be biased, it\u2019s all down the drain. So once that purchase is made, companies need to pay close attention to outcomes and results provided by those tools, if any discrepancies or bias become apparent, put a pause on those tools. Don\u2019t let something preventable discredit and\/or shut down your business.&nbsp;<\/p>\n\n\n\n<p>Computers are hard. <a href=\"https:\/\/www.pwvconsultants.com\/blog\/why-hiring-an-expert-is-crucial-to-success\/\" target=\"_blank\" rel=\"noreferrer noopener\">Consult and\/or hire an expert<\/a> who can be a point of contact should any problems or questions arise.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The FTC says it will crack down on bias in AI used by businesses.  Businesses looking to disrupt the industry may need to shift their focus.<\/p>\n","protected":false},"author":1,"featured_media":1823,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"content-type":"","footnotes":""},"categories":[1965,1969,2112],"tags":[1968,1886,2166,36,2113,2269,2268,1888,571],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v22.2) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Computers Are Hard: Bias in AI Could Bring FTC Action - PWV Consultants<\/title>\n<meta name=\"description\" content=\"The FTC says it will crack down on bias in AI used by businesses. Businesses looking to disrupt the industry may need to shift their focus.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.pwvconsultants.com\/blog\/computers-are-hard-bias-in-ai-could-bring-ftc-action\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Computers Are Hard: Bias in AI Could Bring FTC Action\" \/>\n<meta property=\"og:description\" content=\"The FTC says it will crack down on bias in AI used by businesses. Businesses looking to disrupt the industry may need to shift their focus.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.pwvconsultants.com\/blog\/computers-are-hard-bias-in-ai-could-bring-ftc-action\/\" \/>\n<meta property=\"og:site_name\" content=\"PWV Consultants\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/PWV-Consultants-110444033947964\" \/>\n<meta property=\"article:published_time\" content=\"2021-04-26T15:20:43+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2021-04-26T15:20:45+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.pwvconsultants.com\/blog\/wp-content\/uploads\/2021\/04\/Computers-Are-Hard-Bias-in-AI-scaled.jpeg\" \/>\n\t<meta property=\"og:image:width\" content=\"2560\" \/>\n\t<meta property=\"og:image:height\" content=\"1707\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Pieter VanIperen\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@PWV_Consultants\" \/>\n<meta name=\"twitter:site\" content=\"@PWV_Consultants\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Pieter VanIperen\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.pwvconsultants.com\/blog\/computers-are-hard-bias-in-ai-could-bring-ftc-action\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.pwvconsultants.com\/blog\/computers-are-hard-bias-in-ai-could-bring-ftc-action\/\"},\"author\":{\"name\":\"Pieter VanIperen\",\"@id\":\"https:\/\/www.pwvconsultants.com\/blog\/#\/schema\/person\/c15d5d40126a8ad906cb3067de95f8d4\"},\"headline\":\"Computers Are Hard: Bias in AI Could Bring FTC Action\",\"datePublished\":\"2021-04-26T15:20:43+00:00\",\"dateModified\":\"2021-04-26T15:20:45+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.pwvconsultants.com\/blog\/computers-are-hard-bias-in-ai-could-bring-ftc-action\/\"},\"wordCount\":807,\"publisher\":{\"@id\":\"https:\/\/www.pwvconsultants.com\/blog\/#organization\"},\"image\":{\"@id\":\"https:\/\/www.pwvconsultants.com\/blog\/computers-are-hard-bias-in-ai-could-bring-ftc-action\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.pwvconsultants.com\/blog\/wp-content\/uploads\/2021\/04\/Computers-Are-Hard-Bias-in-AI-scaled.jpeg\",\"keywords\":[\"algorithm\",\"Artificial Intelligence\",\"Bias\",\"Business\",\"Computers Are Hard\",\"Federal Trade Commission\",\"FTC\",\"Machine Learning\",\"technology\"],\"articleSection\":[\"Artificial Intelligence\",\"Business\",\"Computers Are Hard\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.pwvconsultants.com\/blog\/computers-are-hard-bias-in-ai-could-bring-ftc-action\/\",\"url\":\"https:\/\/www.pwvconsultants.com\/blog\/computers-are-hard-bias-in-ai-could-bring-ftc-action\/\",\"name\":\"Computers Are Hard: Bias in AI Could Bring FTC Action - PWV Consultants\",\"isPartOf\":{\"@id\":\"https:\/\/www.pwvconsultants.com\/blog\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.pwvconsultants.com\/blog\/computers-are-hard-bias-in-ai-could-bring-ftc-action\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.pwvconsultants.com\/blog\/computers-are-hard-bias-in-ai-could-bring-ftc-action\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.pwvconsultants.com\/blog\/wp-content\/uploads\/2021\/04\/Computers-Are-Hard-Bias-in-AI-scaled.jpeg\",\"datePublished\":\"2021-04-26T15:20:43+00:00\",\"dateModified\":\"2021-04-26T15:20:45+00:00\",\"description\":\"The FTC says it will crack down on bias in AI used by businesses. 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