Security News > 2021 > May > Do customers have a right to know how companies that use algorithms make their decisions?

Increasingly, businesses rely on algorithms that use data provided by users to make decisions that affect people.

Do users, customers, employees, and others have a right to know how companies that use algorithms make their decisions? In a new analysis, researchers explore the moral and ethical foundations to such a right.

"In most cases, companies do not offer any explanation about how they gain access to users' profiles, from where they collect the data, and with whom they trade their data," explains Tae Wan Kim, Associate Professor of Business Ethics at Carnegie Mellon University's Tepper School of Business, who co-wrote the analysis.

The GDPR is ambiguous about whether it involves a right to explanation regarding how businesses' automated algorithmic profiling systems reach decisions.

Attracting clients by providing explanations on how they use algorithms.

The authors also delve into how companies that run businesses based on algorithms can provide explanations of their use in a way that attracts clients while maintaining trade secrets.

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