• What is a Model/Algorithm and How It Makes Decisions
• The Real-World Impact of Algorithms
• Healthcare Algorithms – The Arkansas Case

What is a Model/Algorithm and How It Makes Decisions

As humans, we continuously learn about the world, and through our interactions, we develop the ability to make decisions—sometimes consciously, sometimes not. Our evolution has now reached a point where we’ve created machines that can also make decisions, using mathematical rules embedded in their systems.

These mathematical systems, also known as algorithms or models, have become more powerful because today’s computers can process larger amounts of data in less time. These models take data as input, apply a set of rules or patterns, and generate outcomes such as scores, decisions, predictions, movements, or even language.

For businesses, the ability to process vast amounts of data quickly and make faster decisions often translates to higher profits and lower operational costs. Consequently, even if we’re unaware, key aspects of our lives are influenced by these algorithms and models—whether in credit scoring, school admissions, job applications, marketing, or even prison sentencing.

🔍 The problem? Many of these models are built on incomplete or biased data, and their inner workings are often opaque. This means the decisions they make, though presented as objective, can actually reinforce inequalities and errors. Understanding how these models make decisions is the first step toward recognizing their potential for both good and harm.

The Real-World Impact of Algorithms

Sometimes, we don’t realize how much these things directly affect us. But this isn’t science fiction—it’s been happening for quite a while. I’m not saying that using algorithms is a problem; they’re a powerful tool for improvement. However, implementing them requires a great deal of accountability and responsibility, as they can unintentionally reinforce and perpetuate discrimination.

In Weapons of Math Destruction, Cathy O’Neil explains how unchecked algorithms disproportionately harm vulnerable populations. The book provides real-life examples of this (and many more):

🎯 Many companies use algorithm-powered personality tests to screen job applicants.

🎯 Credit scores are used to determine not just loan eligibility, but also other life opportunities like renting an apartment or getting a job.

🎯 Sentencing algorithms in some court systems influence the length and severity of prison sentences.

🎯 Hiring algorithms screen job applicants for companies.

💡 Takeaway: It’s important to recognize that these systems, even though they’re based on data, are not neutral. They must be carefully designed, monitored, and regulated to ensure fairness. We’ve known this for a long time, but now, with nearly anyone able to develop and implement these systems, it’s more important than ever to address these issues.

Healthcare Algorithms – The Arkansas Case

While the book covers many sectors, one critical area that wasn’t discussed is healthcare, where the impact of algorithms can be life-altering.

In my research, I came across a powerful example: the Arkansas Medicaid algorithm case.

📝 The case: In 2016, Arkansas used an algorithm to determine the number of in-home care hours Medicaid patients would receive. The algorithm’s formula overlooked patient complexities, leading to significant reductions in care for many individuals. This had a devastating impact on their quality of life.

🔎 Lesson: Just like in other areas, healthcare algorithms need transparency and oversight. Without accountability, these systems can cause real-world harm—particularly for vulnerable populations who depend on these decisions.

Want to know more? Check out this detailed report: The Guardian: Algorithm crucial in healthcare decisions

Source: 📚 These insights are inspired by Cathy O’Neil’s excellent book, Weapons of Math Destruction. If you’re interested in learning more about how these systems affect our lives, I highly recommend checking it out.