Definition
Automated decision-making (ADM) relies on software systems to make choices that previously required human judgment. Common in credit scoring, content moderation, and logistics, ADM uses predefined rules or learned models to process inputs and generate outputs instantly. While it increases efficiency and scalability, it raises concerns regarding bias, lack of transparency, and accountability. Effective ADM requires careful design to ensure decisions are fair, explainable, and aligned with organizational goals.
Summary
The process where algorithms independently select actions or outcomes based on data inputs without direct human oversight.
Key Concepts
- Algorithmic Governance
- Efficiency
- Bias Mitigation
- Human-in-the-Loop
Use Cases
- Credit approval systems in banking
- Dynamic pricing in e-commerce
- Triage systems in healthcare