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So are you saying that if being black is correlated with a lower rate of loan payback, that is a fair indicator for raising their interest rate? It's not clear

• Houshalter 13y ago
  Yes. It's a data point. It's no different than taking into account their job, past history, age, gender, etc. We aren't talking about humans being irrational like "I hate black people, so I am going to charge them more or refuse to do business with them", but rather an unbiased computer algorithm that is simply improving it's ability to make predictions. What data it uses to do that doesn't matter.
  • jschmitz28 13y ago
    That clearly makes sense economically, and I know this already exists (car insurance, for example), but I don't think many people would agree with this on a social level. A security camera with great AI might only follow the black people in a crowded store because it makes sense statistically. But putting people at an unfair disadvantage for what they can't control is a slippery slope.
    • Houshalter 13y ago
      No I don't think people are comfortable with it, but it's silly. It's not putting people at an unfair disadvantage any more than predicting using stuff like age or past history. If you are going to be do predictions at all it's pointless to exclude data that could make them more accurate.