AI Governance

Disparate Impact

A facially neutral policy, practice, or algorithm that disproportionately harms a group based on a protected characteristic — even without discriminatory intent. In AI, disparate impact commonly occurs when models trained on historically biased data reproduce or amplify those patterns in their outputs.

Why It Matters

Disparate impact is how most AI discrimination actually manifests. The algorithm doesn't need to 'intend' to discriminate — if the outcomes are disproportionately harmful to a protected group, legal liability exists regardless of intent.

Example

An AI resume screening tool trained on a company's historical hiring data — which skewed heavily male in engineering roles — learns to downrank resumes that mention 'women's college' or 'women in tech,' creating disparate impact against female applicants without any explicit gender filter.

Think of it like...

Disparate impact is like a height requirement for firefighters — it doesn't mention gender, but it disproportionately excludes women. The rule looks neutral; the effect is not.

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