Disparate impact: Under nondiscrimination law, which theory | AIGP
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Disparate impact: Under nondiscrimination law, which theory of liability is most directly implicated?

AIGP Understanding How Laws, Standards and Frameworks Apply to AI Medium

A neutral tool that yields significantly unequal outcomes across a protected group implicates disparate-impact liability.

The question

An employer's AI resume-screening tool uses no protected attributes as inputs, yet it advances candidates of one gender at a substantially higher rate than another. Under nondiscrimination law, which theory of liability is most directly implicated?

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  1. Disparate impact, where a facially neutral practice produces a significantly unequal outcome across groups
    Correct: neutral inputs but unequal outcomes across a protected group is the classic disparate-impact pattern.
  2. Disparate treatment, where an employer intentionally treats an individual worse because of a protected trait
    Plausible, but disparate treatment requires intentional use of a protected trait, absent from a neutral tool.
  3. Breach of contract, where an employer fails to honor a term agreed with the affected job candidate
    Unrelated to discrimination law; a screening outcome does not create a contractual breach of this kind.
  4. Retaliation, where an employer penalizes a worker for asserting a protected right or filing a complaint
    Retaliation needs a protected activity being punished, which the screening scenario does not describe.
The trap
Assuming discrimination requires intent, so that a 'neutral' model cannot create liability.

How to remember it

A neutral tool that yields significantly unequal outcomes across a protected group implicates disparate-impact liability.

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