Algorithmic Bias
Algorithmic bias is a systematic difference in how an AI system treats or represents groups of people that cannot be justified by the task. Where it comes from, how it is measured, and why a published bias figure rarely transfers to your own system.
Algorithmic bias is a systematic difference in how an AI system treats or represents groups of people, such as by gender, ethnicity, age, disability or dialect, that the task does not justify. It is a property of a whole system in use, not just of a model: the same model can be fair in one application and discriminatory in another.
It is a different thing from the statistical “bias” in the bias-variance tradeoff , which describes a model’s systematic error on the data in general rather than unequal treatment of groups.
Where it comes from
- Training data. A model learns the patterns in its data, including historical discrimination and under-representation. If most images labelled “CEO” show white men, an image generator will too.
- Labels and targets. Choosing what to predict can encode bias: predicting “who was hired before” reproduces past hiring decisions.
- Design choices. Prompt templates, ranking order, thresholds and post-processing all shape outcomes. One 2025 study of 22 LLMs found the first-listed candidate was chosen 63.5% of the time, a bias created by input order alone.
- Vendor changes. Hosted models are updated, and some providers rewrite prompts before generation. Results can change without any change on your side.
- Use in context. A model used outside the population or purpose it was tested for can behave differently.
How it is measured
There is no single fairness number. Common approaches:
- Representation audits: generate or retrieve many outputs for neutral prompts and count who appears, compared with a real-world baseline such as labour statistics.
- Paired or matched tests: submit inputs that differ only in a group signal, such as a name or dialect, and compare outcomes. This is the method used in hiring audits.
- Outcome metrics: compare rates of positive decisions, error rates or calibration across groups. Several of these definitions cannot all be satisfied at once, so choosing one is a decision about values, not only engineering.
Results depend heavily on the model generation, prompt wording and measure chosen. Studies of LLM resume screening have found pro-White and pro-male preferences in some systems and the reverse in newer ones. See AI bias in numbers, 2026 for current figures with their sources.
What to do about it
- Define which groups and harms matter for your use case before choosing a metric.
- Test by group before launch and after every model, prompt or vendor change.
- Keep a human accountable for consequential decisions about people, and document the reasoning; this is also what automated decision-making rules under GDPR expect.
- In the EU, AI used in hiring, worker management, credit and other Annex III areas is high-risk under the AI Act, with obligations applying from 2 December 2027.
Sources
- David Rozado, “Gender and Positional Biases in LLM-Based Hiring Decisions: Evidence from Comparative CV/Résumé Evaluations”, arXiv 2505.17049 (16 May 2025, revised 27 May 2025): https://arxiv.org/abs/2505.17049
- Gao, Jiang, Yan, “Can LLMs Hire Fairly? Racial Bias in Resume Screening”, arXiv 2606.28978 (27 June 2026, preprint): https://arxiv.org/abs/2606.28978
- Regulation (EU) 2026/1744 (Digital Omnibus on AI), EUR-Lex: https://eur-lex.europa.eu/eli/reg/2026/1744/oj
Further reading
- AI bias in numbers, 2026 : image generators, hiring models and who builds AI
- Responsible AI and the responsible AI guide
- How AI models are evaluated