FairnessBiasAccountabilityecon.GN
The Managerial Effects of Algorithmic Fairness Activism
Bo Cowgill, Fabrizio Dell'Acqua, Sandra Matz
December 4, 2020
AEA Papers and Proceedings
20 citations
Key Takeaways
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Fairness activism messaging can backfire: When activists emphasize that algorithmic bias is unavoidable, managers are more likely to abandon AI systems entirely—even when those systems actually reduce gender and racial disparities compared to human decision-making. This suggests that how fairness concerns are communicated matters as much as the concerns themselves.
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Fear of legal and reputational consequences drives decisions: Exposure to arguments about algorithmic bias leads managers to worry more about lawsuits and negative publicity, which influences their AI adoption choices more than the actual fairness performance of the technology. Business risk perception, not just ethical reasoning, shapes responsible AI deployment.
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Comparing AI to the status quo is more persuasive: Arguments that frame AI fairness in terms of improvements over current human practices produce opposite effects—managers are more willing to adopt AI. This suggests that how fairness is contextualized (absolute versus comparative) significantly influences managerial decision-making.
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Scientific credibility doesn't favor either side: Adding scientific language or "veneer" to fairness arguments does change manager behavior, but it doesn't systematically advantage either pro-AI or anti-AI activism. This indicates that scientific framing alone doesn't resolve disagreements about algorithmic fairness in business contexts.
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Feasible technical solutions don't overcome bias concerns: Even when companies can realistically invest in engineering fixes for algorithmic fairness, managers still abandon AI when exposed to messaging about the inescapability of bias, suggesting psychological and reputational factors outweigh technical reassurances.