Disparate Impact

• Making decisions about people that impact different population subgroups disproportionately. This usually refers to situations where an algorithmic decision-making process harms or benefits some subgroups more than others.
• For example, suppose an algorithm that determines a Lilliputian’s eligibility for a miniature-home loan is more likely to classify them as “ineligible” if their mailing address contains a certain postal code. If Big-Endian Lilliputians are more likely to have mailing addresses with this postal code than Little-Endian Lilliputians, then this algorithm may result in disparate impact.