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The Managerial Effects of Algorithmic Fairness Activism

Author

Listed:
  • Bo Cowgill
  • Fabrizio Dell'Acqua
  • Sandra Matz

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.

Suggested Citation

  • Bo Cowgill & Fabrizio Dell'Acqua & Sandra Matz, 2020. "The Managerial Effects of Algorithmic Fairness Activism," AEA Papers and Proceedings, American Economic Association, vol. 110, pages 85-90, May.
    • Handle: RePEc:aea:apandp:v:110:y:2020:p:85-90
    DOI: 10.1257/pandp.20201035
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    Cited by:

    1. Manjul Gupta & Carlos M. Parra & Denis Dennehy, 2022. "Questioning Racial and Gender Bias in AI-based Recommendations: Do Espoused National Cultural Values Matter?," Information Systems Frontiers, Springer, vol. 24(5), pages 1465-1481, October.
    2. Chugunova, Marina & Sele, Daniela, 2022. "We and It: An interdisciplinary review of the experimental evidence on how humans interact with machines," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 99(C).

    More about this item

    JEL classification:

    • C45 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Neural Networks and Related Topics
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • M15 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - IT Management

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