Wednesday 17 December 2014

When algorithms fail

Craig Constantinides of Go2Games
Decisions made by pre-programmed computer algorithms are increasingly affecting our lives, and not always for the better; a point made clear by two events in the last two weeks.

An Amazon glitch between 7 and 8pm last Friday saw hundreds of products automatically plummet to a rock bottom price of 1p, at which point they were quickly snapped up by consumers already whipped into a bargain Christmas gift frenzy by media hype around Black Friday. The culprate in this case was Repricer Express - a software which promises "continuous repricing 24/7" for sellers across multiple online channels. As a seller, this is a way of ensuring that you're offering the most competitive prices for your wares without having to check on the competition yourself. Come Saturday morning, a number of people who had left the algorithms in charge found that huge amounts of stock had been given a way in a freak 1hr flash sale caused by a glitch in the software.

Whilst an algorithm stealing from Amazon will be seen by many as a kind of automated Robin Hood, redistributing riches from the greedy corporation to the poor consumer, it turns out that the online megalith won't be the one that will actually suffer. Craig Constantinides of Go2Games claimed in CityAM that £358,000 of stock had been affected. He issued pleas via Facebook for customers to return, or pay full price, for goods purchased in the giveaway. Which raises the point that although it was the machines wot gave it away, it was consumers that pounced on the bargains, unable to believe their luck. Should it be on their conscience whether they return the goods? It will be unless Repricer Express or Amazon refund all damages.

To be fair to Repricer Express, they have pointed out that there is already an automatic alert built into the software to warn retailers of any dramatic price fluctuation. This suggests that those who came a-cropper were those who chose to turn this function off and trust the machines. On the other hand the hour of the glitch could just have easily affected anyone who was doing something other than constantly check their phones 24/7.

Talking of conscience, the second crime against humanity perpetrated by the algorithms this week was courtesy of taxi app Uber. The company operates an automatic surge pricing which saw fares in the area of Sidney caught up in the hostage siege shoot up to a minimum of $100, as people tried to flee the area. A spokesperson for the company explained that the system was designed to attract more drivers to an area of high demand,  but the company quickly moved to regain their human status by offering free rides to all affected. This goes to show that behind every algorithm lies a human agent with the power to decide how it is programmed and to take responsibility for any resulting failure. The real heartless automaton of the week was the badly programmed disgrace to the Islamic faith responsible for it all, not to mention the idiots posing for selfies at the cordon.

Human agents need be held to account for any machine-made decisions, but we all need to be aware of how much to responsibility we are handing over to the automation in our lives.

Monday 9 February 2015: If you're interested in these ideas, I can thoroughly recommend Nicholas Carr's The Glass Cage, published last month by Bodley Head.