CommerceGuard.org is the primary site of the Commerce Accountability Project (CA Project, LLC), an organization dedicated to exposing anti-competitive, anti-labor and anti-consumer practices in industry. We rely on the support of the public to continue our work. If you would like to support us, please consider donating or volunteering. You can learn more about us here.
Glossary
InsuranceFinanceHealthcareEmployment LawPrivacy

Automated Decision-making

Automated decision-making refers to a process where decisions affecting individuals are made by automated systems without human intervention. This could involve using algorithms and data processing to analyze information and reach a conclusion.

Example #1

An online retailer using automated systems to approve or deny credit card applications based on specific criteria without human input.

Example #2

An algorithm scanning job applications and selecting candidates based on certain keywords or qualifications.

Misuse

Misuse of automated decision-making can lead to discrimination, as algorithms may inadvertently perpetuate biases present in the data used to train them. For example, if an automated system is used to screen rental applications and it unfairly discriminates against certain demographics due to biased data, this can result in unjust outcomes. It's crucial to protect against such misuse to ensure fairness and prevent harm to individuals.

Benefits

Automated decision-making can streamline processes, improve efficiency, and make quicker decisions based on large datasets. For instance, banks can use automated systems to detect fraudulent activities swiftly by analyzing patterns in transactions, thus enhancing security measures and protecting consumers.

Conclusion

While automated decision-making offers benefits in terms of efficiency and speed, it also raises concerns regarding fairness, transparency, and bias. It's essential to ensure that automated systems are used responsibly, with proper oversight and mechanisms in place to address any potential biases or errors.

Related Terms

Consumer PrivacyGDPRData ProcessingData Protection

Last Modified: 4/30/2024
Was this helpful?