What is a disparate impact?
Making decisions about people that impact different population subgroups disproportionately.
disparate impact explained in plain English
Making decisions about people that impact different population subgroups disproportionately. This usually refers to situations where an algorithmic decision-making process harms or benefits some subgroups more than others. For example, suppose an algorithm that determines a Lilliputian's eligibility for a miniature-home loan is more likely to classify them as "ineligible" if their mailing address contains a certain postal code. If Big-Endian Lilliputians are more likely to have mailing addresses with this postal code than Little-Endian Lilliputians, then this algorithm may result in disparate impact. Contrast with disparate treatment, which focuses on disparities that result when subgroup characteristics are explicit inputs to an algorithmic decision-making process.
Example
Practitioners refer to disparate impact when building, training, or evaluating machine learning systems. It appears in research papers, product documentation, and technical discussions about AI capabilities and limitations.
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