AI incident #250 ·

Dutch City Court Defended Home Value Generated by Black-Box Algorithm

What happened

A home value generated by a black-box algorithm was reportedly defended by the Castricum court, which was criticized by a legal specialist for setting a dangerous precedent for accepting black-box algorithms as long as their results appear reasonable.

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News reports (1)

Coverage catalogued by the AI Incident Database. Titles link to the original publisher; the text is not reproduced here.

Who was involved

Alleged deployer
Castricum Municipality
Alleged developer
Castricum Municipality
Alleged harmed party
Unnamed Property Owner

Classification (MIT AI Risk Repository taxonomy)

Causal entity
Human
Intent
Unintentional
Timing
Post-deployment
Harm level
Sectors
Countries

Risk entries describing this failure mode

Entries from the MIT AI Risk Repository coded to subdomain 7.4.

  • Intelligibility

    "How can we build agent’s whose decisions we can understand? Con- nects explainable decisions (Berkeley) and informed oversight (MIRI)."

    AGI Safety Literature Review (Everitt2018 )

  • Attributing the responsibility for AI's failures

    "This section, constituting almost 8% of the articles, addresses the implications arising from AI acting and learning without direct human supervision, encompassing two main issues: a responsibility gap and AI's moral st...

    What Ethics Can Say on Artificial Intelligence: Insights from a Systematic Literature Review (Giarmoleo2024)

  • Model Evaluations (Interpretability/Explainability)

    Risk Sources and Risk Management Measures in Support of Standards for General-Purpose AI Systems (Gipiškis2024)

  • Model outputs inconsistent with chain-of-thought reasoning

    "Chain-of-thought reasoning is sometimes employed to get a better understanding of the model’s output, where it encourages transparent reasoning in text form. However, in some cases, this reasoning is not consistent with...

    Risk Sources and Risk Management Measures in Support of Standards for General-Purpose AI Systems (Gipiškis2024)

  • Lack of understanding of in-context learning in language models

    "In-context learning allows the model to learn a new task or improve its perfor- mance by providing examples in the prompt, without changing its weights [101]. Even though this technique is highly effective, its working...

    Risk Sources and Risk Management Measures in Support of Standards for General-Purpose AI Systems (Gipiškis2024)

  • General Evaluations (Difficulty of identification and measurement of capabilities)

    "The capabilities of general-purpose AI systems can be difficult to measure, compared to the capabilities of more limited and fixed-purpose AI systems. This is in part due to a broader distribution of potential risks, a...

    Risk Sources and Risk Management Measures in Support of Standards for General-Purpose AI Systems (Gipiškis2024)

  • Lack of transparency and interpretability

    "Today's Frontier AI is difficult to interpret and lacks transparency. Contextual understanding of the training data is not explicitly embedded within these models. They can fail to capture perspectives of underrepresent...

    Future Risks of Frontier AI (GOS2023)

  • Opacity (the black box problem)

    "Opacity surrounding the technical, internal decision-making processes of generative AI models is popularly known as the “black box problem.”277 Generative AI models, most ubiquitously built on deep neural networks with...

    Regulating under Uncertainty: Governance Options for Generative AI (G'sell2024)

Incidents in the same risk subdomain

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