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Incident 250: Dutch City Court Defended Home Value Generated by Black-Box Algorithm

Description: A home value generated by a black-box algorithm was reportedly defended by the Castricum court, which was criticized by a legal specialist for setting a dangerous precedent for accepting black-box algorithms as long as their results appear reasonable.

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Alleged: Castricum municipality developed and deployed an AI system, which harmed unnamed property owner.

Incident Stats

Incident ID
250
Report Count
1
Incident Date
2016-02-01
Editors
Khoa Lam
Applied Taxonomies
CSETv1, GMF, MIT

MIT Taxonomy Classifications

Machine-Classified
Taxonomy Details

Risk Subdomain

A further 23 subdomains create an accessible and understandable classification of hazards and harms associated with AI
 

7.4. Lack of transparency or interpretability

Risk Domain

The Domain Taxonomy of AI Risks classifies risks into seven AI risk domains: (1) Discrimination & toxicity, (2) Privacy & security, (3) Misinformation, (4) Malicious actors & misuse, (5) Human-computer interaction, (6) Socioeconomic & environmental harms, and (7) AI system safety, failures & limitations.
 
  1. AI system safety, failures, and limitations

Entity

Which, if any, entity is presented as the main cause of the risk
 

Human

Timing

The stage in the AI lifecycle at which the risk is presented as occurring
 

Post-deployment

Intent

Whether the risk is presented as occurring as an expected or unexpected outcome from pursuing a goal
 

Intentional

Incident Reports

Reports Timeline

Incident OccurrenceDutch city uses algorithm to assess home value, but has no idea how it works
Dutch city uses algorithm to assess home value, but has no idea how it works

Dutch city uses algorithm to assess home value, but has no idea how it works

algorithmwatch.org

Dutch city uses algorithm to assess home value, but has no idea how it works
algorithmwatch.org · 2020

In a seemingly routine case at the Amsterdam court of appeal, a judge ruled that it was acceptable for a municipality to use a black-box algorithm, as long as the results were unsurprising.

In 2016, the municipality of Castricum, a seaside …

Variants

A "variant" is an incident that shares the same causative factors, produces similar harms, and involves the same intelligent systems as a known AI incident. Rather than index variants as entirely separate incidents, we list variations of incidents under the first similar incident submitted to the database. Unlike other submission types to the incident database, variants are not required to have reporting in evidence external to the Incident Database. Learn more from the research paper.
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