Financial Technology
Bias in algorithms refers to systematic favoritism or prejudice embedded in the decision-making processes of automated systems, which can result in unfair or discriminatory outcomes. This phenomenon arises when the data used to train algorithms reflects existing societal inequalities or when the algorithmic design itself incorporates subjective judgments. Understanding bias is crucial, especially in contexts where algorithms influence significant areas like finance, as it can affect investment decisions, credit scoring, and risk assessments.
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