How to regulate algorithmic decision‐making: A framework of regulatory requirements for different applications

Algorithmic decision‐making (ADM) systems have come to support, pre‐empt or substitute for human decisions in manifold areas, with potentially significant impacts on individuals' lives. Achieving transparency and accountability has been formulated as a general goal regarding the use of these sy...

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Published inRegulation & governance Vol. 16; no. 1; pp. 119 - 136
Main Authors Krafft, Tobias D., Zweig, Katharina A., König, Pascal D.
Format Journal Article
LanguageEnglish
Published Melbourne John Wiley & Sons Australia, Ltd 01.01.2022
Subjects
accountability
agency theory
algorithmic decision‐making
risk matrix
transparency
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Abstract Algorithmic decision‐making (ADM) systems have come to support, pre‐empt or substitute for human decisions in manifold areas, with potentially significant impacts on individuals' lives. Achieving transparency and accountability has been formulated as a general goal regarding the use of these systems. However, concrete applications differ widely in the degree of risk and the accountability problems they entail for data subjects. The present paper addresses this variation and presents a framework that differentiates regulatory requirements for a range of ADM system uses. It draws on agency theory to conceptualize accountability challenges from the point of view of data subjects with the purpose to systematize instruments for safeguarding algorithmic accountability. The paper furthermore shows how such instruments can be matched to applications of ADM based on a risk matrix. The resulting comprehensive framework can guide the evaluation of ADM systems and the choice of suitable regulatory provisions.
AbstractList Algorithmic decision‐making (ADM) systems have come to support, pre‐empt or substitute for human decisions in manifold areas, with potentially significant impacts on individuals' lives. Achieving transparency and accountability has been formulated as a general goal regarding the use of these systems. However, concrete applications differ widely in the degree of risk and the accountability problems they entail for data subjects. The present paper addresses this variation and presents a framework that differentiates regulatory requirements for a range of ADM system uses. It draws on agency theory to conceptualize accountability challenges from the point of view of data subjects with the purpose to systematize instruments for safeguarding algorithmic accountability. The paper furthermore shows how such instruments can be matched to applications of ADM based on a risk matrix. The resulting comprehensive framework can guide the evaluation of ADM systems and the choice of suitable regulatory provisions.
Author Krafft, Tobias D.
König, Pascal D.
Zweig, Katharina A.
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Notes Conflict of interest: The authors declare that they have no conflict of interest.
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Snippet Algorithmic decision‐making (ADM) systems have come to support, pre‐empt or substitute for human decisions in manifold areas, with potentially significant...
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StartPage 119
SubjectTerms accountability
agency theory
algorithmic decision‐making
risk matrix
transparency
Title How to regulate algorithmic decision‐making: A framework of regulatory requirements for different applications
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