DATASCI 185: Introduction to AI Applications

Lecture 15: Types of Bias and How They Arise

Danilo Freire

Department of Data and Decision Sciences
Emory University

Welcome back! ⚖️

Recap of last class

  • Last time we explored data documentation and governance
  • Datasheets for datasets, model cards for models, system cards for AI systems
  • Data lineage: tracking where data comes from
  • The consent problem in AI training data
  • Today: Types of bias and how they arise
  • This topic affects real people in real ways, as we’ll see
  • Whose values does AI encode when it makes decisions?

Source: Anthropic

Lecture overview

Today’s agenda

Part 1: The big picture

  • What is bias? (It’s complicated!)
  • The mirror problem: AI reflects us
  • Real-world harms: who gets hurt?

Part 2: Types of bias

  • Historical bias: the past baked in
  • Representation bias: who’s missing?
  • Measurement bias: bad proxies
  • Aggregation and evaluation bias

Part 3: Applying the framework

  • Activity: Spot the bias!
  • Where bias shows up (preview)

Part 4: The hard questions

  • The impossibility theorem: can we be fair?
  • Fairness tradeoffs: uncomfortable choices
  • Is AI bias fixable?

Neural network of the day!

Cortical Labs

Source: Cortical Labs

Well, let’s get back to our lecture… 😅

A story to start with

Robert Julian-Borchak Williams, Detroit, 2020

  • Arrested in front of his family
  • Accused of stealing watches
  • Held for 30 hours in jail
  • Later released: wrong person

What happened?

  • A facial recognition system matched his driver’s licence photo to grainy surveillance footage
  • The algorithm was wrong
  • Robert is Black. Research shows facial recognition has higher error rates for darker-skinned faces

This wasn’t a software bug. It was how the system was built

Robert Williams case

Source: ACLU

What is Bias? 🤔

Defining bias: It’s complicated

“Bias” means different things:

Context Meaning Example
Statistical Systematic deviation Biased estimator under/overestimates
Cognitive Mental shortcuts Confirmation bias
Cultural Learned assumptions “Doctors are male”
Algorithmic Systematic unfairness Different error rates by group
Historical Past inequalities Less data on minorities

In AI, bias typically means:

A system that produces systematically unfair outcomes for certain groups of people.

But who defines “unfair”? That’s the hard part.

The mirror problem: AI reflects us

Is AI biased, or is it just showing us what we already are?

  • AI learns from human-generated data
  • Historical data contains historical discrimination
  • If humans made biased decisions, AI learns those patterns
  • And AI can amplify existing biases at scale

Example: Word embeddings

  • “Man” is to “Doctor” as “Woman” is to… “Nurse”
  • The AI learned this from millions of human texts
  • It picked up our own sexism from the text

AI trained on human data inherits human biases

Source: UNESCO

If the bias comes from us, does that make AI less accountable, or more?

Discussion: Pick your risk 🎲

The scenario:

You’re applying to university. You get to choose who evaluates your application:

Option A: A human admissions officer

  • Might favour applicants who remind them of themselves
  • Could be swayed by mood, time of day, or fatigue
  • You can appeal and read social cues
  • Bias is inconsistent and unpredictable

Option B: An AI admissions tool

  • Might penalise your ZIP code, name, or school
  • Applies the same criteria to everyone, every time
  • You cannot argue with it or explain context
  • Bias is systematic and invisible

Which do you choose, and why?

Think about:

  • Does it matter that you can’t argue with an algorithm?
  • Is consistent bias fairer than unpredictable bias?
  • Would your answer change if you knew which group the bias disadvantaged?
  • What would you want to know before choosing?

Neither option is safe. The question is which risk you’d rather take, and what that tells us about what we value.

⏱️ 2 minutes

Why this matters

AI systems are making decisions about:

Domain Decision Affected
Employment Who gets hired, promoted, fired Millions of applicants
Finance Who gets loans, credit, insurance Billions globally
Healthcare Who gets treatment, care priority Life and death
Criminal justice Bail, sentencing, parole Freedom and families
Education Admissions, resources, grading Future opportunities

The scale problem:

  • Algorithms decide faster than humans can review
  • One biased system can affect millions of people
  • Errors compound: a bad decision today feeds worse data into tomorrow’s model

Types of Bias 📊

A taxonomy of bias

Bias type When it occurs Example
Historical Past decisions encoded in data Loan data from discriminatory era
Representation Some groups underrepresented Few dark-skinned faces in training
Measurement Proxies used for unmeasurable concepts Using ZIP code for creditworthiness
Aggregation Treating diverse groups as one “One model fits all” fails
Evaluation Wrong benchmarks for testing Testing on unrepresentative data
Deployment Model used in wrong context US model applied globally

Bias can creep in at any stage:

Data collection → Data labelling → Model training → Model evaluation → Deployment → Use

Historical bias: the past baked in

This happens when past discrimination is baked into the training data, even if the data accurately reflects the real world at the time

The Amazon hiring case (2018):

  • Amazon built an AI to screen CVs
  • Trained on 10 years of past hiring decisions
  • Past hiring was male-dominated
  • AI learned: penalise CVs mentioning “women’s”
    • “Women’s chess club captain” → downgraded
    • All-women’s college → downgraded
  • Amazon scrapped the tool

The data was “accurate”: it did reflect Amazon’s actual hiring. But that hiring was biased.

Amazon hiring AI

Source: Reuters

Accurate data ≠ fair data. The history was real; the discrimination was too.

Representation bias: Who’s missing?

When certain groups are underrepresented in training data, the model performs poorly for them

Example: Voice assistants

  • Voice recognition systems trained primarily on:
    • American and British accents
    • Male voices (often from tech employees)
    • Native speakers
  • Result: Higher error rates for:
    • Non-native English speakers
    • Regional accents (Scottish, Indian, Nigerian)
    • Women’s voices in some systems
    • Children and elderly users

Why?

  • Whoever collects the data determines who’s in it
  • Convenience samples from developers themselves
  • “Edge cases” are actually most of the world

Voice recognition bias

Source: Axios

If you’re not in the training data, the model has nothing to learn about you.

Measurement bias: Proxies gone wrong

Using a measurable proxy for something you actually care about… but the proxy doesn’t work equally for everyone

Example: ZIP code as a credit proxy

  • Banks can’t legally use race to make loan decisions
  • But they can use ZIP codes
  • ZIP codes correlate strongly with race due to housing discrimination
  • Result: A “race-neutral” variable that encodes race

Other problematic proxies:

What we want Proxy used Problem
Intelligence Standardised tests Reflects access to prep
Job quality Tenure Penalises caregivers
Creditworthiness Payment history Assumes equal opportunity
Health needs Past spending Reflects access barriers

Measurement bias

Source: Harvard Law Review

You can remove race from the data and still end up with a racially biased model, because the proxies do the work instead.

Aggregation bias: One size doesn’t fit all

Treating diverse populations as if they’re all the same, when the underlying relationships differ across groups

Example: Diabetes prediction

  • A single model is trained on data from all patients
  • But diabetes manifests differently across ethnicities:
    • Different genetic risk factors
    • Different dietary patterns
    • Different symptom presentations
  • A single model may work well on average but poorly for specific groups
  • Simpson’s paradox

The maths:

Model Overall Accuracy Group A Group B
Single model 85% 90% 75%
Group-specific 88% 89% 86%

Average performance can hide disparate impact

Source: Wikipedia

Question: Should we build separate models for different groups? What are the tradeoffs?

Evaluation bias: Testing on the wrong people

When the benchmark dataset used to test a model doesn’t represent the population it will be used on

The benchmark problem:

  • Standard benchmarks become industry standards
  • Everyone optimises for the same tests
  • If the test is biased, success on the test means nothing

Example: ImageNet

  • For years, the gold standard in computer vision
  • But images were predominantly from the US and Europe
  • Models trained and tested on it worked great… in the US
  • Deployed globally: failures on everyday objects from other cultures

Evaluation bias

Source: Wired

High scores on a biased benchmark just mean the model is good at being biased.

Deployment bias: wrong context

Sometimes a model works fine where it was built but fails when used in a different context.

Example: US model in India

  • Credit scoring model trained on US financial data
  • Deployed in India to assess loan applications
  • Problem: Different banking systems, income patterns, credit histories
  • Result: Inappropriate decisions for the new context

Example: COVID-19 detection

  • Models trained on hospital data from one region
  • Deployed in different regions with different equipment
  • X-ray machines, demographics, disease prevalence all differed
  • Performance dropped significantly

Deployment bias

Source: Yang et al (2024)

A model trained in one context can fail quietly when moved to another.

Bias through the AI lifecycle

Bias through the AI lifecycle

Fixing the training data won’t help if the evaluation benchmark is also biased. You need to check every stage

Feedback loops: Bias that amplifies itself

What is a feedback loop?

When an algorithm’s predictions influence the data it will be trained on in the future

Example: Predictive policing

  1. Algorithm predicts crime hotspots based on past arrest data
  2. Police patrol those areas more heavily
  3. More patrols → more arrests (whether or not crime rates differ)
  4. New arrest data confirms the algorithm’s predictions
  5. Algorithm becomes more confident in biased patterns
  6. Cycle continues…

Why this is dangerous:

  • The algorithm creates evidence for its own predictions
  • Bias compounds over time
  • After a few cycles, nobody can tell what the real crime rate was

Feedback loop: Hot-spots policing

Source: SpotCrime

Other feedback loops:

  • Loan denials → worse credit → more denials
  • Resume filters → homogeneous workforce → more biased training data

Activity: Spot the bias! 🔍

Scenario: University admissions

An AI recommends admissions based on SAT scores, high school GPA, and extracurriculars

  • What types of bias might this contain?
  • Who might be disadvantaged?
  • What proxies are being used?

Discuss one scenario with a neighbour:

  1. Identify at least 2 types of bias
  2. Propose how you might mitigate them
  3. What tradeoffs would you face?

⏱️ 2 minutes

The Hard Questions ❓

The impossibility theorem

You can’t have it all

Three fairness criteria (simplified):

  1. Calibration: Among those given the same score, outcomes should be similar across groups

  2. Equal false positive rates: Groups should have equal rates of being wrongly flagged

  3. Equal false negative rates: Groups should have equal rates of being wrongly missed

The impossibility theorem:

If base rates differ between groups, you cannot satisfy all three simultaneously

Put simply: If Group A reoffends at 40% and Group B at 20%, you must choose which type of error to equalise

There is no mathematically “fair” solution.

Impossibility theorem

No algorithm can tell you which errors matter more. That is a political and moral question.

Who defines “fair”? 🤔

What counts as fair depends on what you value:

Definition Prioritises Drawback
Equal treatment Consistency Ignores context
Equal outcomes Equity May require discrimination
Equal error rates Group parity May sacrifice accuracy
Calibration Individual accuracy Hides disparity

The problem:

  • There is no neutral default
  • Whoever picks the fairness definition shapes who benefits
  • Saying “we just use the data” is itself a choice

Fairness tradeoffs: Uncomfortable choices

Tradeoff 1: Accuracy vs. Fairness

  • Making predictions equally accurate across groups may reduce overall accuracy
  • Who pays the cost?

Tradeoff 2: Individual vs. Group Fairness

  • Treating individuals identically (blind to group) may produce unequal group outcomes
  • Treating groups equally may disadvantage qualified individuals

Tradeoff 3: Transparency vs. Gaming

  • Revealing how the algorithm works allows people to game it
  • Keeping it secret prevents accountability

Tradeoff 4: Short-term vs. Long-term

  • Using current data perpetuates historical inequalities
  • Ignoring current data may reduce accuracy today

Different stakeholders want different things:

  • Affected communities: Equalise outcomes
  • Companies: Maximise accuracy
  • Regulators: Ensure process fairness
  • Courts: Protect individual rights

Who gets to decide which tradeoff to make?

Activity: Make the tradeoff! ⚖️

You’re designing a loan approval algorithm

The data shows:

  • Group A: 80% repay loans
  • Group B: 60% repay loans (due to historical economic disadvantage)

You must choose ONE approach:

  1. Same threshold for all: 70% predicted repayment = approved
    • Result: More Group B rejected
  2. Equal approval rates: Adjust thresholds so both groups have 50% approval
    • Result: More defaults, higher risk
  3. Equal false rejection rates: Ensure same % of good borrowers rejected across groups
    • Result: Different approval rates

Questions to discuss:

  • Which approach is “fairest”?
  • Who benefits and who is harmed by each?
  • Would your answer change if Group B’s lower rate was due to discrimination (not ability)?
  • Should the algorithm try to correct historical injustice, or just not perpetuate it?

Vote with your class!

Which approach would you choose and why?

⏱️ 3 minutes to debate!

Perspectives: Is AI bias fixable?

The optimists

  • AI bias is a technical problem with technical solutions
  • Better data, better algorithms, better audits
  • AI might be less biased than humans
    • Humans are inconsistent; AI is at least consistent
    • AI decisions can be audited; human gut feelings cannot
  • Datasets are improving, regulations are catching up

“A biased algorithm can be retrained. A biased hiring manager is harder to fix.”

The sceptics

  • AI bias reflects societal problems that can’t be coded away
  • “Fair AI” talk distracts from the root causes
  • Who defines fairness? Usually those already in power
  • AI obscures human accountability
  • Some decisions shouldn’t be automated at all

“You can’t fix a discriminatory housing market by tweaking a credit-scoring model.”

Where do you stand?

Summary 📚

Main takeaways

  • AI learns from human data, so it inherits human biases

  • Historical bias bakes past discrimination into models

  • If a group is missing from training data, the model fails for them

  • Seemingly neutral proxies (ZIP code, test scores) can encode inequality

  • The impossibility theorem: you cannot satisfy all fairness criteria at once

  • Choosing a fairness definition is a values question, not a technical one

…and that’s all for today! 🎉