AI Ethics, Governance & Your Career
Responsible AI Product Development
As a PM, you're the advocate for users—including ensuring AI treats them fairly.
Why Responsible AI Matters
| Stakeholder | What They Risk |
|---|---|
| Users | Unfair treatment, privacy violations, harmful content |
| Company | Reputation damage, lawsuits, regulatory fines |
| Society | Discrimination at scale, erosion of trust in technology |
Your responsibility: You may not build the AI, but you define what it does and for whom.
Understanding AI Bias
Where Bias Comes From
| Source | Example | PM Question |
|---|---|---|
| Training data | Historical hiring data reflects past discrimination | "What biases exist in our training data?" |
| Labeling | Annotators apply their own biases | "Who labeled our data? Were they diverse?" |
| Feature selection | Using zip codes can encode racial bias | "Are any features proxies for protected attributes?" |
| Objective function | Optimizing for clicks may promote sensationalism | "What behavior does our objective reward?" |
Types of Bias to Watch For
| Bias Type | Definition | Example |
|---|---|---|
| Selection bias | Training data doesn't represent all users | Face recognition fails on darker skin tones |
| Automation bias | Humans over-trust AI decisions | Doctors defer to AI even when wrong |
| Confirmation bias | AI reinforces existing beliefs | Recommendation bubbles |
| Measurement bias | Proxy metrics don't capture true outcome | Using arrests as proxy for crime |
Fairness Frameworks
Equal Opportunity
All groups should have equal true positive rates.
Example: A loan AI should approve qualified applicants at the same rate regardless of race.
Demographic Parity
Positive outcomes should be equal across groups.
Example: Hiring recommendations should be proportional to applicant pool demographics.
Individual Fairness
Similar individuals should receive similar treatment.
Example: Two people with identical qualifications should get similar credit scores.
PM Trade-off Reality
These definitions can conflict. You can't always maximize all fairness metrics simultaneously.
Your job: Choose the appropriate fairness definition for your context and be transparent about trade-offs.
Bias Detection Checklist
Before launching AI features, verify:
Data Audit
- Training data demographics reviewed
- Underrepresented groups identified
- Historical biases documented
Model Testing
- Performance tested across demographic groups
- Disparate impact analyzed
- Edge cases reviewed
User Impact
- Potential harms identified
- Affected populations consulted
- Mitigation strategies defined
Transparency Requirements
When to Explain
| Decision Stakes | Transparency Level |
|---|---|
| Low (recommendations) | Optional, brief |
| Medium (content moderation) | Available on request |
| High (credit, hiring) | Required, detailed |
What to Explain
| Question | Answer Should Include |
|---|---|
| "Why did AI decide this?" | Key factors that influenced decision |
| "How can I change the outcome?" | Actionable steps the user can take |
| "Is this fair?" | How fairness was considered |
Building Trust Through Design
Transparency Patterns
| Pattern | Implementation |
|---|---|
| Disclosure | "This decision was made by AI" |
| Explanation | "Based on your purchase history..." |
| Control | "Adjust your preferences here" |
| Appeal | "Request human review" |
Red Flags to Address
| User Concern | Your Response |
|---|---|
| "This feels unfair" | Easy appeal process |
| "I don't understand why" | Clear explanation |
| "This is wrong" | Human review available |
| "My data is being misused" | Transparent data practices |
PM Responsibilities
Before Building
- Define fairness requirements in PRD
- Identify at-risk populations
- Consult legal/ethics teams
During Development
- Review training data for bias
- Request fairness testing
- Document design decisions
After Launch
- Monitor for disparate impact
- Track user complaints by demographic
- Regular fairness audits
Key Takeaway
Responsible AI isn't just ethics—it's product quality. Biased AI fails users, creates legal risk, and damages trust. Make fairness a product requirement, not an afterthought.
Next: AI regulations are becoming law. What do PMs need to know about the EU AI Act and other frameworks? :::