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In our most recent Research Assistant Peer Group meeting, we talked about artificial intelligence (AI) and the new fears, concerns, and problems it creates. As a prime example, the Colorado bill on Artificial Intelligence, which goes into effect in February 2026, has given us a new phrase to be concerned about: Algorithmic Discrimination. Colorado is not the only state working to address this issue.  

So, what, exactly, is Algorithmic Discrimination  

Algorithmic Discrimination occurs when AI systems create biases in their algorithms when using data on people, leading to harm or unfair outcomes. While AI itself is not inherently biased, it is programmed by humans and learns from the data it processes. This means that if data is biased, the AI’s decisions may reflect that bias.   

For example, using AI to target specific geographic areas for sales or discounts – only to find that these areas disproportionately consist of minority populations, wealthy individuals, certain religious groups, or specific age ranges – could be deemed discriminatory. Similarly, if a propensity-to-pay model is used to identify audiences, it may unintentionally exclude or unfairly prioritize certain groups, leading to unintended discrimination.  

While some uses of AI – like finding the most likely address for a customer – may be acceptable, using AI to build dialer campaigns or prioritize collections could raise concerns if the underlying algorithm is considered unfair by affected groups. Even if an AI system appears unbiased, proving its neutrality could be challenging, especially since algorithms do not inherently possess human emotions or intentions.  

The reality is that we still don’t know how algorithmic discrimination will be regulated. This uncertainty makes it crucial for us to stay informed and proactive in preparing for the potential impact on our organizations.  

Join The Conversation!   

This important topic will continue to be discussed in our RA Peer Group future meetings. We need to identify how this will affect our organizations. Remember, you may not think it affects you, but it may affect many of your vendors who use AI every day for the duties they perform for you. Even if you are not using much AI, you likely will be at some time in the future.   

Join us and put on your thinking cap, we need to brainstorm to be ready!  

Documents and Crowdsourced Materials:   

• Member Questions: Investigating fraud claims, CFPB Update, AI Privacy laws, Algorithm discrimination, and more… 

Top Reads:   

• Credit reporting agencies move to dismiss medical debt case
• Consumer Finance’s Deregulatory Shift—The Evolving Role of Compliance 

Upcoming Webinars/ Other Announcements:   

• Note: Next week Missy and Sara will be traveling, and Debra Ciskey will lead the meeting. Send all your questions to Sara to forward to Debra for the agenda. Remember to come prepared with some brainstorming ideas for the AI issue.
• Important Announcement: All AI Notetaking Bots will be removed from Research Assistant Peer Group Meetings. This is to maintain the confidentiality of our peer members.
• Have topics you want to discuss during the peer call? Please send them to Sara_Consultant@roundtables.us by Thursday to ensure it makes it on our agenda!