Algorithm bias can have various negative effects on businesses, including:
Customer Discrimination: Biased algorithms can lead to unfair treatment of customers, such as biased lending decisions in financial services or discriminatory pricing strategies. Workforce Inequality: In recruitment and talent management, biased algorithms can perpetuate existing inequalities, affecting diversity and inclusion in the workplace. Operational Inefficiencies: Algorithms that make flawed predictions can result in inefficient operations, leading to increased costs and wasted resources.