Systemic Influences and Socioeconomics
❑ Checking for and removing of systemic biases is difficult.
❑ Systemic biases can creep in at every step of the modeling process: data,
algorithms, and validation of results.
❑ Human involvement in designing and coding algorithms, where there is a lack of diversity
❑ Biases embedded in training datasets
❑ Use of variables that proxy for membership in a protected class
❑ Statistical discrimination profiling shopping behavior, such as price optimization
❑ Technology-facilitated advertising algorithms used in ad targeting and ad delivery
Author(s): David Sandberg, Data Science and Analytics Committee, AAA
Publication Date: August 2022
Publication Site: American Academy of Actuaries