In today’s digital age, algorithms are not just tools—they are the unseen rulers shaping our decisions, behaviors, and even our futures. As organizations increasingly rely on artificial intelligence to drive decision-making, we must confront a critical question: Who is held accountable when algorithms go awry?

The Hidden Rule of Algorithms

Algorithms now influence every aspect of our lives. From determining credit scores and insurance coverage to influencing sentencing, education, and employment decisions, algorithmic predictions are deeply embedded in our society. Yet, these systems operate behind a veil of secrecy and, more importantly, without accountability. Much like the opaque financial instruments that precipitated the 2008 crisis, algorithms today risk creating calamities if their inner workings remain unchallenged.

The Pitfalls of Algorithmic Predictions

Algorithmic forecasting is often mistaken for a crystal ball that accurately predicts the future. In reality, these models analyze historical data and project patterns forward—effectively fossilizing the past rather than innovating the future. This reliance on past data means that algorithms:

  • Shift Control Over People’s Futures: They risk transferring decision-making power from individuals to opaque entities.
  • Fail to Account for Human Variability: Unexpected human behaviors—those essential “swerves” that differentiate us from machines—are dismissed as mere noise.
  • Create Self-Fulfilling Prophecies: By basing predictions on historical trends, algorithms can inadvertently reinforce existing inequalities and limit future opportunities.

Renowned experts such as Arvind Narayanan, in AI Snake Oil, and Katrina Geddes, in The Death of the Legal Subject, have warned that relying on algorithmic predictions for determining life chances is not only technologically unsolvable but also morally problematic.

Real-World Impacts: Health Insurance and Social Media

Health Insurance Algorithms:
The health insurance sector provides a stark example of algorithmic failure. Recent lawsuits allege that companies like UnitedHealthcare use algorithms with alarmingly high error rates to deny coverage. For instance, the nH Predict algorithm often underestimates the necessary duration for post-hospital care, ignoring critical factors such as comorbidities and complications during recovery. The proprietary nature of these algorithms prevents patients and doctors from understanding or challenging decisions that can have life-altering consequences.

Social Media Algorithms:
On social platforms, algorithms dictate not only what we see but also how we engage. They promote content that maximizes user engagement—even if that means amplifying extreme opinions and deepening societal divisions. By throttling external links, these algorithms keep users confined within the platform, undermining independent journalism and stifling broader discourse. In contrast, emerging platforms like BlueSky are already gaining traction by offering an environment free from manipulative algorithmic constraints.

Toward Algorithmic Accountability

At Copenhagen Compliance, we believe that the unchecked authority of algorithms must be curtailed. Our recommendations include:

  • Enact an Algorithmic Accountability Act: Legislation should impose strict controls on algorithmic decision-making, particularly in areas affecting health, credit, and employment.
  • Increase Transparency: Companies must be required to disclose the underlying logic of their algorithms, especially when these systems have significant material impacts on individuals.
  • Implement Liability Measures: Establish clear legal consequences for algorithmic failures that cause harm, ensuring that entities cannot escape accountability under the guise of trade secrets.
  • Foster a Culture of Ethical AI: Encourage organizations to adopt best practices in algorithmic governance—balancing innovation with the protection of human autonomy.
  • Empower User Choice: Support the migration to platforms that respect user autonomy and offer transparent, user-centric algorithmic models.

A Call to Action

The era of unaccountable algorithms must end. As AI continues to evolve, it is imperative that regulatory frameworks keep pace with technological advancements. Greater accountability, transparency, and ethical oversight will not only safeguard human rights but also foster a more equitable digital future.

At Copenhagen Compliance, we are at the forefront of this movement. We urge policymakers, industry leaders, and stakeholders to join us in demanding an accountable approach to AI—a future where technology serves humanity without compromising our autonomy or security.

The time for reckoning with algorithmic authority is long overdue. Let’s ensure that our future is not dictated by unaccountable algorithms but shaped by responsible innovation and robust self-regulation.