The Caliphate of numbers

Abstract

Purpose

The purpose of this paper is to catalogue the various ways in which algorithm-driven decision-making now permeates myriad fields of human activities from insurance through criminal justice to hiring and employment and suggest that this diffusion represents a qualitatively new level of reputation threat for organizations in every industry.

Design/methodology/approach

The author uses an audit of numerous secondary sources to identify common themes and distinctive impacts of the uses of algorithms.

Findings

This research determined that perverse and unintended consequences of the spread of algorithm-driven decision-making were pervasive.

Research Limitations/implications

Based on a review of secondary resources, data on the impact of the algorithms is of necessity primarily anecdotal.

Practical Implications

The research shows that the pervasive inequities produced by algorithm-driven decision-making represents a very significant reputation risk and a potential flashpoint for many different organizations.

Social Implications

If algorithm-driven decision-making indeed entrenches racism and other inequities, it is critical for society that we find an effective way to regulate their use.

Originality/value

While considerable attention has been devoted to individual instances of inequities produced by algorithm-driven decision-making, we believe this is one of the first reviews to look across the spectrum of applications from a reputation risk perspective.

Citation

Hirsch, P.B. (2016), "The Caliphate of numbers", Journal of Business Strategy, Vol. 37 No. 6, pp. 51-55. https://doi.org/10.1108/JBS-09-2016-0098