Automated decision-making in the public sector. Artificial Intelligence vs Administrative Intelligence?

Hortense Fricker

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Master's Thesis from the year 2020 in the subject Organisation and administration - Public administration, grade: 1,1, Free Unive...

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Master's Thesis from the year 2020 in the subject Organisation and administration - Public administration, grade: 1,1, Free University of Berlin (Otto-Suhr-Institut), language: English, abstract: The paper is divided in two main parts. The first part introduces the agency theory and its application to two relevant aspects: the agency theory in the public sector and the agency theory involving artificial agents. The second part aims at providing answers to the research questions, by discussing the changes in the agency of the public administrations, as well as the changes in the control methods used to monitor these administrations. Finally, the conclusion summarizes the answer to the research questions, exposes the implications and limits of this paper and offers leads for possible future research on this topic. Automated decision-making (ADM), a type of algorithm which supports decision-making and combines advanced analytics and data minig to make predictions, has been developed in various public sector fields, from predictive policing to healthcare, and is increasingly helping public agents by delivering analysis that they can leverage to make their decisions. This technique involves three main stakeholders: the programmer of the algorithmic system; the user, who is the public agent operating the ADM system; and the individuals affected by the decisions made using ADM. This paper focuses on the consequences on the governance and responsibility of administrations increasingly relying on algorithms to make their decisions. Does the introduction of ADM in public administrations transform their agency? If so, why does this change occur and how does it impact the control methods required to supervise the actions of administrations? The chosen approach is the agency theory, which is suited to deal with delegation, specifically between actors from different contextual backgrounds. France has been chosen as the case-study for this topic, as it has put in place relevant laws and public institutions in order to deal with public ADM. The method chosen to investigate this issue is based on a literature review, as it is appropriate to approach a case-study. This includes scientific papers for the technical aspects, from computer sciences to social and political sciences, as well as reports from governments, international institutions and private companies. More general literature, such as articles and blog posts are used for information on the use of ADM in France and the public debate surrounding it. Finally, the methodology also includes semi-structured interviews led with experts working on the topic of ADM in the public sector.