Counterfactual Explanations without Opening the Black Box: Automated Decisions and the GDPR

There has been much discussion of the right to explanation in the EU General Data Protection Regulation, and its existence, merits, and disadvantages. Implementing a right to explanation that opens the black box of algorithmic decision-making faces major legal and technical barriers. Explaining the functionality of complex algorithmic decision-making systems and their rationale in specific cases is a technically challenging problem. Some explanations may offer little meaningful information to data subjects, raising questions around their value. Explanations of automated decisions need not hinge on the general public understanding how algorithmic systems function. Even though such interpretability is of great importance and should be pursued, explanations can, in principle, be offered without opening the black box. Looking at explanations as a means to help a data subject act rather than merely understand, one could gauge the scope and content of explanations according to the specific goal or action they are intended to support. From the perspective of individuals affected by automated decision-making, we propose three aims for explanations: (1) to inform and help the individual understand why a particular decision was reached, (2) to provide grounds to contest the decision if the outcome is undesired, and (3) to understand what would need to change in order to receive a desired result in the future, based on the current decision-making model. We assess how each of these goals finds support in the GDPR. We suggest data controllers should offer a particular type of explanation, unconditional counterfactual explanations, to support these three aims. These counterfactual explanations describe the smallest change to the world that can be made to obtain a desirable outcome, or to arrive at the closest possible world, without needing to explain the internal logic of the system

Understanding smart contracts as a new option in transaction cost economics

Among different concepts associated with the term blockchain, smart contracts have been a prominent one, especially popularized by the Ethereum platform. In this study, we unpack this concept within the framework of Transaction Cost Economics (TCE). This institutional economics theory emphasizes the role of distinctive (private and public) contract law regimes in shaping firm boundaries. We propose that widespread adoption of the smart contract concept creates a new option in public contracting, which may give rise to a smart-contract-augmented contract law regime. We discuss tradeoffs involved in the attractiveness of the smart contract concept for firms and the resulting potential for change in firm boundaries. Based on our new conceptualization, we discuss potential roles the three branches of government – judicial, executive, and legislative – in enabling and using this new contract law regime. We conclude the paper by pointing out limitations of the TCE perspective and suggesting future research directions

A discussion of selected aspects of privacy, confidentiality, and anonymity in computerized conferencing

This paper presents a discussion of the potential uses of privacy, confidentiality and anonymity in computerized conferencing. Section I begins with definitions of the concepts, their aspects and allied terms; and briefly discusses their use in general communications and problem-solving activities. Section II explores their use in social research, particularly the survey method, a field that may yield useful analogues for computerized conferencing. Section III outlines the various functions of privacy, confidentiality and anonymity that have been proposed for their constructive use in computerized conferencing. Section IV reports various difficulties and compromises that have been encountered to date in striving to achieve true privacy, confidentiality or anonymity in computerized conferencing. Section V gives preliminary estimates of various ways of enhancing the concepts through computerized conferencing

Design and Implementation of Software Engineering Developed Process Models

An Analysis is done of the traditional software life cycle models that are used in the field and current software development practices. It then gives a more in-depth look at the traditional models of software evolution that are used a lot and are thought of as the best way to organize software engineering projects and technologies. There are so many things that go into making software that it's hard to think of a single process model that would work for all projects. This study, however, came up with a generalized model that could help companies make good software. A general goal for evaluation, which means to think about or think about how important it is, is shown. Examining current practices, confirming theories, exploring when the subject isn't well understood, and describing the current state of things are all part of the general evaluation goals. Evaluation helps predict the future and explain why things or sequences are taking place, so it is important to do it. It is important to know about both the software process and what the software does. With this evaluation, we can figure out how to evaluate it

The AI Revolution: Opportunities and Challenges for the Finance Sector

This report examines Artificial Intelligence (AI) in the financial sector, outlining its potential to revolutionise the industry and identify its challenges. It underscores the criticality of a well-rounded understanding of AI, its capabilities, and its implications to effectively leverage its potential while mitigating associated risks. The potential of AI potential extends from augmenting existing operations to paving the way for novel applications in the finance sector. The application of AI in the financial sector is transforming the industry. Its use spans areas from customer service enhancements, fraud detection, and risk management to credit assessments and high-frequency trading. However, along with these benefits, AI also presents several challenges. These include issues related to transparency, interpretability, fairness, accountability, and trustworthiness. The use of AI in the financial sector further raises critical questions about data privacy and security. A further issue identified in this report is the systemic risk that AI can introduce to the financial sector. Being prone to errors, AI can exacerbate existing systemic risks, potentially leading to financial crises. Regulation is crucial to harnessing the benefits of AI while mitigating its potential risks. Despite the global recognition of this need, there remains a lack of clear guidelines or legislation for AI use in finance. This report discusses key principles that could guide the formation of effective AI regulation in the financial sector, including the need for a risk-based approach, the inclusion of ethical considerations, and the importance of maintaining a balance between innovation and consumer protection. The report provides recommendations for academia, the finance industry, and regulators

After the Gold Rush: The Boom of the Internet of Things, and the Busts of Data-Security and Privacy

This Article addresses the impact that the lack of oversight of the Internet of Things has on digital privacy. While the Internet of Things is but one vehicle for technological innovation, it has created a broad glimpse into domestic life, thus triggering several privacy issues that the law is attempting to keep pace with. What the Internet of Things can reveal is beyond the control of the individual, as it collects information about every practical aspect of an individual’s life, and provides essentially unfettered access into the mind of its users. This Article proposes that the federal government and the state governments bend toward consumer protection while creating a cogent and predictable body of law surrounding the Internet of Things. Through privacy-by-design or self-help, it is imperative that the Internet of Things—and any of its unforeseen progeny—develop with an eye toward safeguarding individual privacy while allowing technological development

SPECIAL EDUCATION DUE PROCESS: AN ANALYSIS OF DECISIONS IN NEW JERSEY FROM JULY 2005 - JUNE 2012

With every reauthorization of the Individuals with Disabilities Education Act (IDEA) since its inception in 1975, parents and school districts have been encouraged to mediate differences through non-legal means, whenever possible. This study assessed Special Education due process in the State of New Jersey between July 2005 and June 2012. The goal was to identify common patterns that led to due process and assess how former litigants described their experience and feelings about due process. I used a qualitative case study approach to collect and analyze data. First, I conducted a document analysis of 187 due process case results. I also analyzed survey results from litigants who were involved in special education due process. My research revealed four common patterns: parents initiated due process at a disproportionately higher rate than school districts; due process complaints were primarily associated with disputes over placement and program; school districts prevailed in most due process cases; and parents fared better when an attorney or advocate represented them in due process proceedings. Results from this study could help New Jersey school districts and parents improve on special education practice, support social justice reform and help guide the next reauthorization of IDEA

Tactical urbanism as a means of testing relational processes in space: A complex systems perspective

Too often, master planning strategies have failed to produce spaces responding to the social, cultural, and economic needs of their inhabitants. Accordingly, many planners have turned to relational strategies to redefine their practices. These tend toward methodologies that explore relational forces preceding design interventions rather than unfolding by means of design interventions. This article considers an alternative mode of understanding relational processes: one that considers tactical urban strategies theorized through the lens of complexity theory. This article argues that tactical approaches harness relational junctures in situ, effectively exploring relational configurations of cohesive urban environments. A design competition entry provides an illustrative example of this approach: one that channels and choreographs relational urban processes

First Principles for an Effective Rewrite of the Telecommunications Act of 1996

The increasing centrality of the Internet in modern communications, together with massive changes in the landscape of the telecommunications market, have intensified the calls for Congress to overhaul the Telecommunications Act of 1996. In this paper, we analyze this looming legislative challenge by dividing it into two sets of issues: first, issues concerning the proper substance of telecommunications policy reform; and, second, issues concerning the appropriate institutions for carrying out that reform. In Part I, we argue that Congress should require regulators to adhere more closely to (and justify departures from) basic antitrust principles in developing the substance of competition policy. In particular, we explore how those principles would have brought greater predictability and analytical rigor to the FCC's implementation of statutory provisions requiring incumbent telephone providers to lease parts of their networks to competitors. Moreover, we explain how antitrust principles can now inform the current debate over whether to regulate broadband platforms to prevent discrimination against independent providers of applications like voice over Internet protocol. In Part II, we turn to Congress's institutional choices in reforming telecommunications regulation.Despite our advocacy for antitrust-oriented rules of decision, we argue for a continued reliance on the FCC, rather than antitrust courts, as the appropriate institution for superintending the efficient development of competition throughout the industry.Not only does the FCC enjoy specialized expertise in the economics and technology of the telecommunications industry, it also enjoys a distinct advantage over courts in developing and enforcing complicated ,and necessary,prescriptive rules, such as those governing interconnection and its associated intercarrier fees. At the same time, the FCC will increasingly need to refocus its energies from prescriptive regulation to a new emphasis on after-the-fact enforcement and market-monitoring, much like the role played today by the Federal Trade Commission.