Senators Propose AI Civil Rights Act to Address the ‘Sinister Side’ of Artificial Intelligence

A bill introduced in the US Senate on Tuesday aims to ban discrimination by corporate algorithms and give consumers the option to have a decision made by a human instead of artificial intelligence.

The AI Civil Rights Act it would force companies that develop AI algorithms to test their algorithms for signs of discrimination. The civil legislation, if it passes, could force banks to rethink how they use artificial intelligence in areas such as lending and employment decisions. Banks are already prohibited from unlawfully discriminating in their lending and hiring practices. But rules on transparency and consumers’ right to opt out of AI could require major process and technology changes.

“Artificial intelligence is the hottest topic of the year, but these complex algorithms also have a darker side, one that has real consequences for everyday people, from setting mortgage and insurance rates to screening applicants to determine eligibility for benefits.” , sponsor Sen. . Rep. Edward Markey, D-Mass., said Tuesday. “Companies have already been using black box algorithms for years to make major decisions about Americans’ lives. However, these algorithms are often biased against marginalized communities.” Sen. Mazie Hirono, D-Hawaii, is a co-sponsor of the bill.

Markey proposed the Eliminating Bias in Algorithmic Systems Act of 2023 in December to require government agencies that use, fund or oversee algorithms to have a civil rights office focused on AI bias. This bill has been referred to the Committee on Homeland Security and Governmental Affairs, where it awaits consideration.

In Tuesday’s announcement, Markey said the first principle of the bill is fairness: It prohibits companies from developing or using an artificial intelligence-based algorithm for a critical decision that discriminates based on race, gender or other protected characteristics.

The second principle is transparency: companies should independently test and evaluate their algorithms to identify and mitigate any discrimination.

“This provision sends a message to Silicon Valley,” Markey said. “The AI ​​era cannot be driven by the ‘move fast and break things’ mentality that Big Tech has foolishly adopted over the past two decades.”

The third principle is choice: giving every consumer the right to make major decisions by a human.

“We know AI has a Dickensian quality,” Markey said. “It’s the best of technology and the worst of technology at the same time. It can activate but degrade and do both at the same time. So we need to protect ourselves against the sinister side of cyberspace as AI makes this powerful technology inevitable, with fairness, transparency and choice.”

Companies that violate this law would be subject to civil penalties of $15,000 per violation, or 4 percent of the defendant’s average gross annual income over the past three years, whichever is greater, according to the text of the legislation.

There haven’t been many high-profile cases involving banks or fintechs using biased AI.

Two years ago, a law firm that monitors Fair Lending compliance found lower loan approval rates for black applicants online. consumer lender Upstart Holdings. Law firm Relman Colfax said the disparities do not “in and of themselves demonstrate a fair lending violation” and are not unusual, but recommended a “less discriminatory” model for Upstart to adopt.

Banking industry regulators are already looking for bias. In 2022, the Consumer Financial Protection Bureau declared this discrimination associated with any financial product — not just credit — is illegal. In 2023, Fed Vice Chairman for Supervision Michael Barr said the central bank would incorporate screening for discriminatory practices in its supervisory framework, including the assessment of mergers and acquisitions applications.

Consumer advocacy leaders at the announcement voiced their support for the bill.

“As AI has been increasingly adopted and proliferated across industries, it has made an old but hard-won lesson abundantly clear: equality of opportunity and civil rights cannot be trumped by innovation and technological progress,” he said. Damon Hewitt, President and Chief Executive of the Lawyers Committee. for Civil Rights. “They can and should be linked.”

Algorithms are used to make decisions about all aspects of Americans’ daily lives, including “who gets bail, who can rent a house, where we can go to school, and who is determined to be a threat,” Hewitt said. . “And too often, those decisions were not made fairly or fairly, and certainly not transparently.”

Craig Aaron, co-CEO of Free Press Action, said the bill would require those designing AI tools to conduct audits for potential harm and share the results publicly.

“For too long, there has been no public input or public recourse when these hidden systems cause harm in the real world,” Aaron said. “The AI ​​Civil Rights Act takes a major step in addressing these pressing issues and empowering federal regulators to keep pace with evolving technologies.”