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AI Example of Fair Lending Violation

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Question: 
What is one example of AI going wrong in marketing?
Answer: 

In 2019 HUD initiated a lawsuit against Facebook for FHA violations. The complaint stated, “Respondent collects millions of data points about its users, draws inferences about each user based on this data, and then charges advertisers for the ability to micro-target ads to users based on Respondent’s inferences about them.” Lenders used biased criteria to solicit mortgage loans.

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First published on 02/11/2024

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