Understanding how algorithmic injustice leads to making discriminatory decisions: An obedience to authority perspective

Abstract

Unjust algorithmic recommendations can lead decision makers to discriminatory choices, risking harm to individuals or groups. This study addresses this concerning phenomenon and examines its implications. In an experimental study involving 122 managers, we found that algorithmic injustice causes discriminatory decisions without heightened guilt perception. Additionally, trust in data analytics outcomes moderates the impact of algorithmic injustice on discrimination and marginally influences the impact of discriminatory decision making on guilt perception. However, displacement of responsibility has no moderating effect on either relationship. These findings highlight the potential negative consequences of algorithmic decision making, emphasizing the need for caution and awareness.