Editing Automated Dispute Resolution and Algorithmic Justice (section)

== <span style="color: #FFFFFF;">Applying</span> ==
'''Modeling 'The Bias Audit' (Detecting Algorithmic Bias in a Risk Assessment Tool):'''
<syntaxhighlight lang="python">
def audit_algorithm_for_bias(predictions):
    """
    Audits a risk assessment algorithm for demographic bias.
    predictions: list of dicts with 'group', 'actual_reoffend', 'predicted_high_risk'
    """
    from collections import defaultdict
    
    stats = defaultdict(lambda: {'fp': 0, 'tn': 0, 'tp': 0, 'fn': 0, 'total': 0})
    
    for p in predictions:
        g = p['group']
        stats[g]['total'] += 1
        actual, predicted = p['actual_reoffend'], p['predicted_high_risk']
        if not actual and predicted:     stats[g]['fp'] += 1  # False positive (wrongly labeled risky)
        elif not actual and not predicted: stats[g]['tn'] += 1
        elif actual and predicted:       stats[g]['tp'] += 1
        elif actual and not predicted:   stats[g]['fn'] += 1
    
    print("BIAS AUDIT RESULTS:")
    for group, s in stats.items():
        fpr = s['fp'] / (s['fp'] + s['tn']) if (s['fp'] + s['tn']) > 0 else 0
        print(f"  {group}: False Positive Rate = {fpr:.1%} (wrongly labeled 'high risk')")

# Simulated COMPAS-like dataset
import random; random.seed(42)
data = ([{'group': 'Group A', 'actual_reoffend': random.random() < 0.4, 'predicted_high_risk': random.random() < 0.45} for _ in range(200)] +
        [{'group': 'Group B', 'actual_reoffend': random.random() < 0.4, 'predicted_high_risk': random.random() < 0.55} for _ in range(200)])
audit_algorithm_for_bias(data)
</syntaxhighlight>

; Justice Landmarks
: '''eBay Resolution Center''' → "Resolves" **"60M+ Disputes/Year"** — "The World's Largest" "ODR" "System."
: '''ProPublica's COMPAS Analysis (2016)''' → "Exposing" **"Racial Bias"** in "Criminal Risk Assessment" — "The Defining Moment" for "Algorithmic" "Justice" "Ethics."
: '''The EU AI Act (2024)''' → "Classifying" **"Criminal Justice AI"** as "High Risk" — "Requiring Transparency, Explainability, Human Oversight."
: '''Kleros''' → "The First" **"Blockchain" "Dispute Resolution"** "System" — "Used" for "DeFi," "Content," "Translation" "Disputes."
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