AI revolutionized the business intelligence era and enabled companies to go much deeper into insights drawn from their data. With this advancement in AI, however, it becomes more pressing to address algorithmic bias, which has risks of becoming increasingly prevalent with increased AI sophistication.
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What Is Algorithmic Bias?
Algorithmic bias is the way by which AI algorithms deliver systematically unfair results for particular groups. This could come about in a number of ways, including the following.
Selection Bias
In this case, the training data is not representative of the population.
Confirmation Bias
The algorithm tends to favor information that confirms existing beliefs.
Measurement Bias
Data can be wrong regarding collection or measurement.
Consequences of Bias in BI
Bias in BI may have very serious implications. Biased insights may lead to the following.
Erroneous Decision-Making
Biased data will lead to wrong conclusions and bad business decisions.
Reinforcing Stereotypes
Biased algorithms can further aggrieve the already existing social and economic inequalities.
Loss of Trust
If organizations are found to employ biased AI, then public trust will be lost.
Reducing Bias in AI-Based BI
To reduce bias in AI-based BI, the following should be adopted by organizations.
Diverse and Representative Data
- The training data should be diverse and representative of the population
- Data must be audited and updated regularly to remove biases
Transparent Algorithms
- Transparent and understandable algorithms that indicate the steps of decision making
- Frequent review and auditing to detect bias
Fairness Metrics
- Apply fairness metrics that measure how AI would affect various groups
- Use these metrics to identify and correct biases
Bias Detection and Rectification
- Important human oversight for the discovery and rectification of bias
- Training of data scientists and analysts in bias discovery and mitigation
Continuous Monitoring
- Monitor the performance of AI systems over time to detect and correct emerging biases
- Retrain and update models frequently to maintain accuracy and fairness
Organizations will be able to use AI-powered BI in ways that drive positive change rather than negative ones if they take proactive measures to address these issues.
