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Algorithmic lending has transformed the consumer credit landscape, with complex machine learning models now commonly used to make or assist underwriting decisions. To comply with fair lending laws, these algorithms typically exclude legally…

Applications · Statistics 2025-12-25 Madison Coots , Robert Bartlett , Julian Nyarko , Sharad Goel

Credit is an essential component of financial wellbeing in America, and unequal access to it is a large factor in the economic disparities between demographic groups that exist today. Today, machine learning algorithms, sometimes trained on…

Machine Learning · Computer Science 2022-10-07 I. Elizabeth Kumar , Keegan E. Hines , John P. Dickerson

Machine Learning or Artificial Intelligence algorithms have gained considerable scrutiny in recent times owing to their propensity towards imitating and amplifying existing prejudices in society. This has led to a niche but growing body of…

Machine Learning · Computer Science 2022-05-06 Avijit Ghosh , Lea Genuit , Mary Reagan

There is substantial evidence that Artificial Intelligence (AI) and Machine Learning (ML) algorithms can generate bias against minorities, women, and other protected classes. Federal and state laws have been enacted to protect consumers…

Computers and Society · Computer Science 2021-08-23 Nicholas Schmidt , Bryce Stephens

We consider the problem of improving fairness when one lacks access to a dataset labeled with protected groups, making it difficult to take advantage of strategies that can improve fairness but require protected group labels, either at…

Machine Learning · Computer Science 2018-07-02 Maya Gupta , Andrew Cotter , Mahdi Milani Fard , Serena Wang

Credit scoring has been catalogued by the European Commission and the Executive Office of the US President as a high-risk classification task, a key concern being the potential harms of making loan approval decisions based on models that…

Machine Learning · Computer Science 2024-02-06 Pablo Casas , Christophe Mues , Huan Yu

Algorithmic fairness has become a central concern in modern machine learning and AI applications. However, two pressing challenges remain: (1) The fairness guarantees of existing methods often rely on specific data distributional…

Methodology · Statistics 2026-05-14 Xiaotian Hou , Linjun Zhang

Machine Learning (ML) algorithms shape our lives. Banks use them to determine if we are good borrowers; IT companies delegate them recruitment decisions; police apply ML for crime-prediction, and judges base their verdicts on ML. However,…

Computer Science and Game Theory · Computer Science 2021-01-05 Omer Ben-Porat , Fedor Sandomirskiy , Moshe Tennenholtz

Predictive algorithms are now used to help distribute a large share of our society's resources and sanctions, such as healthcare, loans, criminal detentions, and tax audits. Under the right circumstances, these algorithms can improve the…

Machine Learning · Computer Science 2023-02-21 Alex Chohlas-Wood , Madison Coots , Sharad Goel , Julian Nyarko

Algorithmic fairness has conventionally adopted the mathematically convenient perspective of racial color-blindness (i.e., difference unaware treatment). However, we contend that in a range of important settings, group difference awareness…

Computers and Society · Computer Science 2025-08-12 Angelina Wang , Michelle Phan , Daniel E. Ho , Sanmi Koyejo

Settings such as lending and policing can be modeled by a centralized agent allocating a resource (loans or police officers) amongst several groups, in order to maximize some objective (loans given that are repaid or criminals that are…

Machine Learning · Computer Science 2018-11-16 Hadi Elzayn , Shahin Jabbari , Christopher Jung , Michael Kearns , Seth Neel , Aaron Roth , Zachary Schutzman

Algorithmic decision making systems are ubiquitous across a wide variety of online as well as offline services. These systems rely on complex learning methods and vast amounts of data to optimize the service functionality, satisfaction of…

Machine Learning · Statistics 2017-03-27 Muhammad Bilal Zafar , Isabel Valera , Manuel Gomez Rodriguez , Krishna P. Gummadi

In credit markets, screening algorithms aim to discriminate between good-type and bad-type borrowers. However, when doing so, they can also discriminate between individuals sharing a protected attribute (e.g. gender, age, racial origin) and…

Machine Learning · Statistics 2024-02-09 Christophe Hurlin , Christophe Pérignon , Sébastien Saurin

Traditional approaches to ensure group fairness in algorithmic decision making aim to equalize ``total'' error rates for different subgroups in the population. In contrast, we argue that the fairness approaches should instead focus only on…

Machine Learning · Computer Science 2021-05-11 Junaid Ali , Preethi Lahoti , Krishna P. Gummadi

The increasing impact of algorithmic decisions on people's lives compels us to scrutinize their fairness and, in particular, the disparate impacts that ostensibly-color-blind algorithms can have on different groups. Examples include credit…

Machine Learning · Statistics 2020-06-17 Nathan Kallus , Xiaojie Mao , Angela Zhou

Algorithmic fairness involves expressing notions such as equity, or reasonable treatment, as quantifiable measures that a machine learning algorithm can optimise. Most work in the literature to date has focused on classification problems…

Machine Learning · Computer Science 2020-03-06 Daniel Steinberg , Alistair Reid , Simon O'Callaghan

Machine learning (ML) is playing an increasingly important role in rendering decisions that affect a broad range of groups in society. ML models inform decisions in criminal justice, the extension of credit in banking, and the hiring…

Machine Learning · Computer Science 2022-07-14 Damien Dablain , Bartosz Krawczyk , Nitesh Chawla

Search and recommendation systems, such as search engines, recruiting tools, online marketplaces, news, and social media, output ranked lists of content, products, and sometimes, people. Credit ratings, standardized tests, risk assessments…

Information Retrieval · Computer Science 2021-02-19 Sruthi Gorantla , Amit Deshpande , Anand Louis

Disparities in lending to minority applicants persist even as algorithmic lending finds widespread adoption. We study the role of risk-management constraints, specifically Value-at-Risk ($\VaR$) and Expected Shortfall (ES), in inducing…

Computers and Society · Computer Science 2025-11-13 Adam Bouyamourn , Alexander Williams Tolbert

Optimizing prediction accuracy can come at the expense of fairness. Towards minimizing discrimination against a group, fair machine learning algorithms strive to equalize the behavior of a model across different groups, by imposing a…

Machine Learning · Statistics 2020-06-17 Hongyan Chang , Ta Duy Nguyen , Sasi Kumar Murakonda , Ehsan Kazemi , Reza Shokri
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