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Facebook and Pandora’s box: How using Big Data and Artificial Intelligence in advertising resulted in housing discrimination

Author

Listed:
  • Khatry, Sarah

    (Data Scientist, DataRobot, USA)

Abstract

In 2019, the US Department of Housing and Development charged Facebook with violating the Fair Housing Act 1968. This followed an investigation into the use of ethnically targeted advertising practices on Facebook. To understand Facebook’s targeting methods and the cause of the problematic outcomes, this paper follows the journey of an advertisement through Facebook’s platform. In this way, Facebook’s regulatory missteps can serve as a case study to illustrate how Big Data analytics can, when informed by human and machine bias, cross the line into discriminatory practices. This case study underscores how it is vital — in advertising as in other industries — not to treat advanced analytics like artificial intelligence as black boxes. Indeed, to inform the design and use of advanced analytics, it is essential for companies to consistently develop a comprehensive understanding of their data, in addition to the legal and ethical implications of their operations.

Suggested Citation

  • Khatry, Sarah, 2020. "Facebook and Pandora’s box: How using Big Data and Artificial Intelligence in advertising resulted in housing discrimination," Applied Marketing Analytics: The Peer-Reviewed Journal, Henry Stewart Publications, vol. 6(1), pages 37-45, June.
    • Handle: RePEc:aza:ama000:y:2020:v:6:i:1:p:37-45
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    Cited by:

    1. Stefan Larsson & James Merricks White & Claire Ingram Bogusz, 2024. "The Artificial Recruiter: Risks of Discrimination in Employers’ Use of AI and Automated Decision‐Making," Social Inclusion, Cogitatio Press, vol. 12.

    More about this item

    Keywords

    housing discrimination; Facebook; Big Data; AI; targeted advertising;
    All these keywords.

    JEL classification:

    • M3 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising

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