English

An Unethical Optimization Principle

Risk Management 2019-11-14 v1 Machine Learning Machine Learning

Abstract

If an artificial intelligence aims to maximise risk-adjusted return, then under mild conditions it is disproportionately likely to pick an unethical strategy unless the objective function allows sufficiently for this risk. Even if the proportion η{\eta} of available unethical strategies is small, the probability pU{p_U} of picking an unethical strategy can become large; indeed unless returns are fat-tailed pU{p_U} tends to unity as the strategy space becomes large. We define an Unethical Odds Ratio Upsilon (Υ{\Upsilon}) that allows us to calculate pU{p_U} from η{\eta}, and we derive a simple formula for the limit of Υ{\Upsilon} as the strategy space becomes large. We give an algorithm for estimating Υ{\Upsilon} and pU{p_U} in finite cases and discuss how to deal with infinite strategy spaces. We show how this principle can be used to help detect unethical strategies and to estimate η{\eta}. Finally we sketch some policy implications of this work.

Cite

@article{arxiv.1911.05116,
  title  = {An Unethical Optimization Principle},
  author = {Nicholas Beale and Heather Battey and Anthony C. Davison and Robert S. MacKay},
  journal= {arXiv preprint arXiv:1911.05116},
  year   = {2019}
}
R2 v1 2026-06-23T12:13:32.332Z