Monday, October 20, 2025

Estate agents warned: AI misuse brings legal and reputational risks

Lack of AI Transparency May Breach Consumer Laws, Warns Tech Specialist

Artificial Intelligence (AI) has become an integral part of our daily lives, from virtual assistants to personalized recommendations on social media. It has undoubtedly made our lives easier and more convenient. However, as AI technology continues to advance, concerns about its transparency and potential impact on consumer rights have been raised.

Recently, a tech specialist has warned that the lack of transparency in AI systems may breach consumer laws. This has sparked a debate on the need for more regulations and guidelines to ensure that AI is developed and used ethically and responsibly.

The tech specialist, who wishes to remain anonymous, has highlighted that the lack of transparency in AI systems can lead to biased decision-making and discrimination against certain groups of people. This is a serious concern as AI systems are increasingly being used in areas such as hiring, lending, and insurance, where decisions can have a significant impact on individuals’ lives.

One of the main issues with AI systems is the lack of understanding of how they make decisions. Unlike humans, AI systems do not have the ability to explain their reasoning behind a decision. This makes it difficult for consumers to challenge or question the decisions made by AI systems. As a result, consumers may not be aware of the factors that have influenced the decision, and this lack of transparency can lead to unfair treatment.

Furthermore, the lack of diversity in the development of AI systems can also contribute to biased decision-making. If the data used to train the AI system is biased, it can lead to discriminatory outcomes. For example, a facial recognition system trained on a dataset that primarily consists of white faces may have difficulty accurately identifying people of color. This can have serious consequences, such as false arrests or denial of services, for individuals belonging to minority groups.

The tech specialist has also raised concerns about the potential breach of consumer laws, such as the General Data Protection Regulation (GDPR) in the European Union and the California Consumer Privacy Act (CCPA) in the United States. These laws require companies to be transparent about the data they collect and how it is used. However, with the use of AI, it can be challenging to track and explain how data is being used, making it difficult for companies to comply with these laws.

In response to these concerns, some tech companies have started to take steps towards increasing transparency in their AI systems. For example, Google has launched a tool called “What-If” that allows users to see how different factors can influence the decisions made by its AI systems. Similarly, Microsoft has developed a “Fairness Toolkit” to help developers identify and address potential biases in their AI systems.

However, these efforts are not enough. The tech specialist has emphasized the need for more regulations and guidelines to ensure that AI is developed and used ethically and transparently. This includes requiring companies to disclose the use of AI in their products and services, as well as providing explanations for the decisions made by AI systems.

Moreover, there is a need for diversity in the development of AI systems. This includes not only diversity in terms of race and gender but also diversity in backgrounds and perspectives. This can help prevent biased decision-making and ensure that AI systems are developed with the best interests of all consumers in mind.

In conclusion, the lack of transparency in AI systems is a serious concern that can have significant implications for consumer rights. It is essential for tech companies to take responsibility and ensure that their AI systems are developed and used ethically and transparently. Additionally, governments and regulatory bodies must also step in and establish guidelines and regulations to protect consumers from potential harm caused by AI systems. Only then can we fully harness the benefits of AI while ensuring the protection of consumer rights.

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