Unit 5: Ethics and Technology Flashcards

Explain the impacts technology and artificial intelligence have, from an ethical perspective, on the banking and financial services industry.

1
Q

What is an algorithm?

A

A procedure or formula for solving a problem, based on conducting a sequence of specified actions. It can therefore be described as a process,based on rules, that if followed solves a problem or produces a decision.

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2
Q

What is a moral agent?

A

A ‘being’ who has the ability to
discern right from wrong.

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3
Q

Can a machine be an agent?

A

No.
An agent is being who has the ability to
discern right from wrong. Machines cannot make these decisions.

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4
Q

How can moral agents make decisions?

A

They can make a considered judgment based on professional experience, seek further
information or gain a second opinion.

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5
Q

What moral responsibility do moral agents have?

A

To not cause deliberate and unjustified harm

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6
Q

Traditionally, who is moral agency assigned to?

A

Only to those who can be held responsible for
their actions.

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7
Q

Why should we expect people to act as moral agents?

A

By expecting people to act as moral agents, we hold them accountable for the harm they cause others.

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8
Q

When are we morally responsible?

A

If:
* We are causally responsible for the effects (or lack of effects) of our actions or inactions.
* We intentionally brought about the effects or could have foreseen them.
* The effects are morally important.

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9
Q

If someone accidentally causes harm to someone else, will they still be regarded as morally responsible?

A

They can be, but we could consider them less blameworthy because it was not intentional.

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10
Q

What is a machine learning algorithm?

A

Machine learning algorithms are a specific kind of algorithm which ‘learn’ their own ways
of analysing data and reaching decisions.

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11
Q

How is big data used by banks?

A

Big data is a term used to describe extremely large sets of data that can be analysed by computers to reveal patterns and trends, especially in relation to human behaviours,
decisions and interactions.

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12
Q

What are key ethical concepts related to data analysis?

A

Privacy and consent

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13
Q

When dealing with personal data from which people can be identified, what provisions must organisations comply with?

A

Australian Privacy Principles (APPs).

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14
Q

What do the Australian Privacy Principles (APPs) set out?

A

The rights and data subjects and the obligations of organisations
which collect, process, analyse, use and store personal data

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15
Q

What two elements are needed to build an algorithm?

A
  1. Data (what happened in the past).
  2. A definition of success (what we’re looking for which becomes embedded in the code).
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16
Q

How can autonomous algorithms express bias?

A

Data can represent historical bias, as can the criteria for success, which is often based on opinion.

17
Q

What are ethical problems algorithms have that human agents do not have?

A

Decisions made by algorithms are considered objective, but the reasons behind their decisions are not transparent. There is little room to appeal the decision. See below for more:

  1. They make bias appear objective (can can cement social biases they reflect).
  2. Decisions resulting from algorithms are not transparent - we can ask humans to defend their decisions, but when an algorithm makes a decision the exact processes and calculations that went into that decision are not available to the person at the other end of that decision.