Why are algorithms racist and how artificial intelligence is reinforcing this?

9

October

2020

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Artificial intelligence seems to be the solution to large worldwide problems, expensive tasks can be automatized, and it can help humans make better decisions based on more clear information (Davenport and Ronanki, 2018). However, the problems of artificial intelligence and even basic algorism are becoming more known in everyday news. In 2020 a Twitter algorithm that has the basic function of cropping images that are too large to fit in a tweet, cropped pictures in such a way that white people are displayed more often than people of color (Dans, 2020).

This phenomenon is not unique, more advanced algorithms (with integrated AI) have the same problem too. The Dutch tax authorities used algorithms to detect tax fraud of Dutch households. The algorithm disadvantaged people with double nationalities more than Dutch citizens. They were often more suspected of fraud, even if they did not commit fraudulent activities at all (ANP, 2020).

Algorithms have great power at making predictions and classify information, but only base their information on existing data. A computer cannot rationalize why they make certain decisions. Unlike humans, computers use training data to look for patterns and use them to make predictions. Therefore, computers cannot describe how they made certain decisions. Problems such as the cropping algorithm of Twitter can be caused by unbalanced data or data with sample bias, in which the algorithm does not have sufficient cases in which people of color are the main focus in a big picture. 

 

Algorithms don’t do a good job of detecting their own flaws” – Clay Shirky

 

As algorithms get smatter, we tend to have less control over them. Basic algorithms such as decision tree algorithms or linear regression algorithms are relatively easy to understand, therefore we can change them if necessary. For example, if the algorithm bases its decisions in unethical matters or has unethical outcomes. Modern algorithms have better performance but are harder to understand and to change. We know which variables have a bigger impact than others, but creators have little idea of how these variables affect the outcome. Highly known examples are support vector machines algorithms, random forest algorithms and k-nearest neighbor clustering algorithms. Right now, and in the near future, many algorithms become more powerful by introducing elements of AI and machine learning. These algorithms perform like black boxes, we have little idea which variables influence the outcome and how important they are. Therefore, identifying unethical aspects is hard, even not impossible (Heilweil, 2020). A well-known example is the deep neural networks algorithm.

 

References

ANP. 2020. Kamer geschokt door ‘harde conclusies’ over discriminatie fiscus. [Online]. [Accessed 8 October 2020]. Available from: https://www.trouw.nl/binnenland/kamer-geschokt-door-harde-conclusies-over-discriminatie-fiscus~b58b06e0/

Dans, E. 2020. Biased Algorithms: Does Anybody Believe Twitter Is Racist?. [Online]. [Accessed 8 October 2020]. Available from: https://www.forbes.com/sites/enriquedans/2020/10/03/biased-algorithms-does-anybody-believe-twitter-isracist/?ss=ai#dbf52e584665

Davenport, T.H. and Ronanki, R. 2020. Artificial Intelligence for the Real World. [Online]. [Accessed 8 October 2020]. Available from: https://hbr.org/2018/01/artificial-intelligence-for-the-real-world

Heilweil, R. 2020. Why algorithms can be racist and sexist. [Online]. [Accessed 8 October 2020]. Available from: https://www.vox.com/recode/2020/2/18/21121286/algorithms-bias-discrimination-facial-recognition-transparency

 

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Update of digital innovation in a non-digital industry: traveling and hospitality

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October

2020

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The travel & hospitality industry is an old and robust industry with a value of $1.6 trillion in 2017 (Landford & Weissenberg, n.d.). Key fundamentals of this industry are leisure demand and the global economy. The industry is growing steadily. Important sub-industries are the restaurant, hotel, airline, car rental, and cruise industry (De Bont & Mijinke, n.d.). The travel & hospitality industry is seen as one of the least digitalized industries (Gandhi et al., 2016). Of course, there are some examples of disruptive and incremental digital innovation. Airbnb revolutionized the industry by giving consumers the ability to sublet their apartment on a large scale, however, the disruptive nature of the innovation is debatable (Guttentag & Smith, 2017).

 

Opportunities for digital innovation

Several digital innovations could change or even disrupt the industry. Artificial Intelligence is can be used to optimize customer experience. Think about chatbots on travel websites (Eaton-Cardone, 2020). However, it can also be used to smoothen internal processes, such as changing flight plans to weather conditions and flight delays (BCG, n.d.). However, much needs to be done before AI is common in this industry (Weissenberg & Landford, n.d.).

IoT helps in improving customer experience. An example is using RFID technology as a digital pass. Disney Theme Parks are using this technology to improve customer experience. Guests with this service own a RFID bracelet, which can open hotel room doors, helps you enter theme parks, and can be used to purchase food and merchandise (Disneyworld, n.d.). Another example is the use of sensors, airline companies can easier detect anxiety. This technology is still costly and has some risk, such as cybersecurity (Weissenberg & Landford, n.d.).

Blockchain technology can be used to make loyalty programs more efficiently. Loyalty programs are growing, but highly inefficient. Many people have a connection with a lot of different loyalty programs across different industries: airline, hotel, car rental, e-commerce (Amazon Prime), and suchlike. These loyalty accounts are usually inactive because of their seasonal usage. Therefore, these loyalty programs could be combined in a platform, secured with blockchain technology (Deloitte, n.d.).

 

Current innovation

In the previous paragraph, there have been mentioned three different technologies that are uncommonly used right now and have the opportunity to be commonly used in the future. However, there is one technological innovation that is used right now. Facial recognition is used in the travel & hospitality industry on a larger scale. Many airports and airlines use this software for check-in procedures (Street, 2019). Marriott Hotels are enrolling facial recognition for check-in at their Chinese hotels (Marriott, 2018). Moreover, cruise companies are using the same technology to fasten boarding procedures (Marr, 2019).

 

References

BCG, n.d. Optimizing and Digitizing Airline Operations with Artificial Intelligence. [online] Available at: <https://www.bcg.com/industries/transportation-travel-tourism/optimizing-digitizing-airline-operations> [Accessed 30 September 2020].

De Bont, F. & Mijinke, F., n.d. 2019 travel and hospitality industry outlook. [online] Available at: <https://www2.deloitte.com/content/dam/Deloitte/nl/Documents/consumer-business/deloitte-cip-ths-travel-hospitality-outlook-2019.pdf> [Accessed 30 September 2020].

Deloitte, n.d. Making blockchain real for customer loyalty rewards programs. [online] Available at <https://www2.deloitte.com/content/dam/Deloitte/us/Documents/financial-services/us-fsi-making-blockchain-real-for-loyalty-rewards-programs.pdf> [Accessed 30 September 2020].

Disneyworld, n.d. Unlock the Magic with Your MagicBand or Card [online] Available at <disneyworld.eu/plan/my-disney-experience/bands-cards/> [Accessed 30 September 2020].

Eaton-Cardone, M., 2020. Can Artificial Intelligence Help Alleviate Travel Industry Woes? [online] Available at <https://www.forbes.com/sites/forbestechcouncil/2020/04/20/can-artificial-intelligence-help-alleviate-travel-industry-woes/#206b952d2fda> [Accessed 30 September 2020].

Gandhi, P. & Khanna, S. & Ramaswamy, S., 2016. Which Industries Are the Most Digital (and Why)? [online] Available at: <https://hbr.org/2016/04/a-chart-that-shows-which-industries-are-the-most-digital-and-why> [Accessed 30 September 2020].

Guttentag, D.A. & Smith, S.L.J., 2017. Assessing Airbnb as a disruptive innovation relative to hotels: Substitution and comparative performance expectations. International Journal of Hospitality Management, 64, pp. 1 – 10.

Langford, G., & Weissenberg, A., n.d. 2018 travel and hospitality industry outlook. [online] Available at: <https://www2.deloitte.com/content/dam/Deloitte/us/Documents/consumer-business/us-cb-2018-travel-hospitality-industry-outlook.pdf> [Accessed 30 September 2020].

Marriott, 2018. Joint Venture of Alibaba Group and Marriott International Trials Facial Recognition Check-In Technology. [online] Available at <https://news.marriott.com/news/2018/07/11/joint-venture-of-alibaba-group-and-marriott-international-trials-facial-recognition-check-in-technology> [Accessed 30 September 2020].

Marr, B., 2019. AI On Cruise Ships: The Fascinating Ways Royal Caribbean Uses Facial Recognition And Machine Vision. [online] Available at <https://www.forbes.com/sites/bernardmarr/2019/05/10/the-fascinating-ways-royal-caribbean-uses-facial-recognition-and-machine-vision/#4174eec11524> [Accessed 30 September 2020].

Street, F. 2019. How facial recognition is taking over airports. [online] Available at <https://edition.cnn.com/travel/article/airports-facial-recognition/index.html> [Accessed 30 September 2020].

Weed, J., 2019. Cruise Lines Use Technology to Add the Personal Touch. [online] Available at ,https://www.nytimes.com/2019/02/01/travel/cruise-lines-use-technology-to-add-the-personal-touch.html> [Accessed 30 September 2020].

Weissenberg, A., & Langford, G., n.d. 2018 travel and hospitality industry outlook. [online] Available at <https://www2.deloitte.com/content/dam/Deloitte/bg/Documents/consumer-business/deloitte-wttc-moving-global-travel-industry-forward.pdf> [Accessed 30 September 2020].

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