Examples

1. 1.

   For example, suppose an algorithm that determines a Lilliputian's eligibility for a miniature-home loan is more likely to classify them as "ineligible" if their mailing address contains a certain postal code. If Big-Endian Lilliputians are more likely to have mailing addresses with this postal code than Little-Endian Lilliputians, then this algorithm may result in disparate impact.

2. 2.

   Contrast with disparate treatment, which focuses on disparities that result when subgroup characteristics are explicit inputs to an algorithmic decision-making process.

Real-world uses

Created for this library

1. 1.

   A bank's credit team measures disparate impact across protected groups and documents mitigations in its model risk file.

2. 2.

   A hiring-tech vendor runs disparate impact tests on its candidate screening model before each release to enterprise customers.

3. 3.

   A government agency requires disparate impact reporting for any decision-support model used in its benefits administration program.