Chris Lam

Chris Lam

Alternative data provides valuable insights for lenders to evaluate a borrower's creditworthiness, which could help expand credit access to underserved groups and lower costs for borrowers. But some forms of alternative data have historically been excluded from credit underwriting because it could act as an illegal proxy for a protected class like race or gender, causing redlining. We propose a method for applying causal inference to a supervised machine learning model to debias alternative data so that it might be used for credit underwriting. We demonstrate how our algorithm can be used against a public credit dataset to improve model accuracy across different racial groups, while providing theoretically robust nondiscrimination guarantees.

Chris Lam

Systems thinking provides us with a way to model the algorithmic fairness problem by allowing us to encode prior knowledge and assumptions about where we believe bias might exist in the data generating process. We can then encode these beliefs as a series of causal graphs, enabling us to link AI/ML systems to politics and the law. This allows us to combine techniques from machine learning, causal inference, and system dynamics in order to capture different emergent aspects of the fairness problem. We can use systems thinking to help policymakers on both sides of the political aisle to understand the complex trade-offs that exist from different types of fairness policies, providing a sociotechnical foundation for designing AI policy that is aligned to their political agendas and with society's shared democratic values.