Final answer:
The Harvard Business Review emphasizes conducting algorithm audits to increase transparency, identify biases, and ensure ethical use by involving accuracy measures, providing data securely to researchers, and implementing appropriate regulations.
Step-by-step explanation:
The key reasons emphasized in the Harvard Business Review for conducting audits on algorithms include addressing the unpredictability and difficulty of controlling artificial intelligence to increase transparency and mitigate biases. Experts believe that understanding these biases beforehand can identify possible mistakes and necessitate further examination. Moreover, the use of accuracy nudges to label falsities, providing researchers with more data under secure conditions like differential privacy, and tying consequences of legal violations to corporate executives help in creating more ethical and fair algorithms.
Research studies such as the one by Bruno & Abrahão and the incident of the Target data breach highlight the significance of algorithm audits in real-world settings. These audits can prevent issues like false alarms in security, which often occur due to high cognitive demand on operators. Additionally, regulations such as ensuring user consent for data use, protecting data privacy, and limiting corporate lobbying play a crucial role in governing the ethical use of algorithms.