AI Bias and Black Developers: The Battle for Fairness!

As artificial intelligence (AI) rapidly transforms the business landscape, it brings both unprecedented opportunities and complex challenges, particularly for minority entrepreneurs.?

A recent Intuit QuickBooks survey revealed a striking statistic: 84% of Black business owners already leverage AI tools to run their operations.?

This high adoption rate underscores AI's potential to level the playing field for minority-owned businesses. However, the rise of AI also raises concerns about AI governance, bias, and discrimination within the algorithm.?

In a groundbreaking move, Illinois has enacted pioneering legislation (HB 3773) to address the growing trend of state-level AI regulation in employment practices. While preventing discriminatory outcomes, this legislation may have significant implications for small businesses, Black entrepreneurs, and businesses utilizing AI technologies.

More specifically, businesses increasingly adopting AI tools for various operations now face a dual challenge: leveraging AI for growth while navigating new regulatory frameworks.?

For example, Illinois's new law defines AI as "a machine-based system that... generates outputs such as predictions, content, recommendations, or decisions that can influence physical or virtual environments" and encompasses a wide range of technologies commonly used by small businesses.?

This expansive scope could impact everything from automated customer service chatbots to AI-driven marketing tools.

This law further highlights a critical issue within the sector: the urgent need for diverse representation in AI development to prevent discriminatory algorithm outcomes.?

While there is great potential for AI in the public and private sectors, when will there be an equitable algorithm free from the biases that have long plagued the tech industry?

The answer may lie in increasing the number of Black developers and other underrepresented groups in the industry, ensuring that the creators of these powerful tools reflect the diversity of the users they serve.

However, AI and its developers face a significant diversity problem.?

Can ChatGPT Solve The AI Diversity Problem??

The AI industry faces a significant diversity problem.?

While exact statistics are limited, the tech industry provides a telling comparison - only 7.4% of tech employees at major Silicon Valley companies are Black.?

Some see the AI or tech industry as a way to create new generational wealth, which is quite possible when you consider that the average salary for an AI developer ($125,000) is more than double the median income for Black households ($52,860).?

In some circles, solving the problem could be relatively simple - "hire more Black AI developers in a $16 trillion global industry." In the broader context, achieving this equality requires sophisticated algorithmic fairness that could be forced by legislative guardrails instead of innovation.? ?

As the tech industry learned with California's SB 1047, AI Governance will further complicate the future of the AI landscape. For Black-owned businesses, navigating these conflicting industry stances while complying with emerging state regulations presents a significant challenge.?

While venture capital is pouring into AI safety startups like Ilya Sutskever's SSI (which just raised $1 billion—three months after their team left OpenAI), there could be greater focus and investment on addressing the discriminatory AI practices that forced Illinois to create a landmark law.?

Illinois Groundbreaking AI Law

In 2026, Illinois will take a significant step in regulating AI in employment practices through House Bill 3773.

This Illinois Human Rights Act amendment prohibits employers from using AI systems that result in discrimination against employees or job applicants based on protected characteristics.?The law defines AI as any machine-based system that generates output that influences employment decisions.?

Employers must notify employees when AI is used in recruitment, hiring, promotion, or other employment-related decisions.?

While the law does not mandate formal bias assessments, like some other jurisdictions, it represents a growing trend of state-level efforts to address concerns about AI perpetuating bias in hiring and other employment processes.

Some believe that AI and the bias written into the algorithm are leading to more significant gentrification of Black and urban culture, along with the ability to scale their entrepreneurial dreams.?

"AI is driving gentrification!"?

While AI has been effective in helping businesses identify customers and leads for business, there have been instances where it has also hurt them.?

There have been reports of AI-powered real estate algorithms steering buyers/renters away from historically Black neighborhoods or even limiting the options of the Black-owned businesses they recommend in your location.?

According to Renée Cummings , a scholar at the University of Virginia, "AI is driving gentrification. It is affecting your customer base because more of your customers are not people of color due to gentrification."?

Although Black-owned businesses are benefiting from increased idea generation, data analysis, and ways to improve their customer service experience, an evolving legislative landscape will require them to stay informed of AI developments and regulations affecting their industry.?

This adoption rate suggests that many Black entrepreneurs leverage AI to enhance their competitiveness and efficiency. Yet, concerns persist about AI's potential to exacerbate existing inequalities.

Mutale Nkonde president of AI for the People , warns that AI systems may treat Black-owned businesses differently, potentially perpetuating biases.?As AI continues to shape business landscapes, it's crucial to ensure its development and deployment promote equity and support the growth of Black-owned enterprises.

California's SB 1047 Isn't Just About AI Safety & Compliance?

The domino effect of state-level AI governance is just beginning.?

While Illinois has taken steps to regulate AI in employment practices, California's SB 1047, an AI safety bill, could reshape the development landscape and create new career opportunities.?

While this bill's language would require rigorous safety testing and monitoring of large AI models, it will likely drive demand for AI developers with expertise in safety protocols, risk assessment, and ethical AI development.

And the implications of this bill extend far beyond simple compliance.?

It could create new roles focused on AI safety, compliance, and auditing. The proposed establishment of CalCompute, a public cloud computing cluster, could open up opportunities in the public sector for responsible AI development as well.?

Furthermore, the bill's emphasis on transparency, accountability, and robust cybersecurity measures could create specialized roles that bridge technical implementation with regulatory compliance.

This evolving landscape presents a unique opportunity for Black developers and other underrepresented groups to step into these emerging roles, potentially addressing the diversity gap in AI development from a new angle.

While this legislation could be seen as a way to regulate AI development significantly, it could stimulate growth in the AI job market by creating specializations that emphasize and account for the diversity of the users.?

Education’s Role in Fostering Diverse AI Talent?

AI will continue to play a crucial role in preparing the next generation of diverse thinkers (and hopefully AI developers). While addressing the immediate need for diversity in AI development is crucial, long-term solutions must focus on education.?

To truly move the needle, initiatives must start early and continue through higher education and beyond. Here are few ways:?

K-12 level: STEM programs targeting underrepresented minorities are essential. These programs can spark interest in AI, energy and related fields at a young age, setting students on a path towards careers in technology.

Mentorship: Another critical component. Programs pairing Black students with AI professionals can provide invaluable guidance, inspiration, and real-world insights. These relationships can help students navigate the challenges of entering the field and see themselves represented in successful AI careers.

Resources: Financial support is equally important. Scholarships and grants specifically for Black students pursuing AI-related degrees can help remove economic barriers to entry. These funding opportunities can make the difference between a student choosing to pursue an AI career or opting for a different path due to financial constraints.

Partnerships: Partnerships between tech companies and historically Black colleges and universities (HBCUs) are also proving to be effective. These collaborations can lead to the creation of specialized AI curricula and provide internship opportunities, giving students hands-on experience and direct pathways into the industry.

One standout example of these initiatives in action is the AI4ALL program. This organization offers summer camps and workshops to introduce high school students from underrepresented groups to AI concepts and careers. By providing early exposure and hands-on experience, AI4ALL is helping to build a pipeline of diverse talent for the AI industry.

These educational initiatives are vital for building a diverse AI workforce. By investing in education and providing opportunities at every stage of a student's journey, we can work towards an AI industry that truly reflects the diversity of its users. This, in turn, can help address the concerns about bias and discrimination in AI systems, creating a more equitable technological future for all.

What’s next??

As more AI is developed and rapidly evolving into our lives, whether personally or professionally, there is still room for growth in the development of this technology. The high adoption rates and willingness to embrace innovation is remarkable - but the potential bias and discrimination within AI systems remains a significant concern.?

To create true equity in AI development and deployment will require a holistic approach. This includes increasing diversity among AI developers, fostering education initiatives that build a pipeline of diverse tech talent, and ensure that AI governance prioritizes fairness and inclusivity.?

How do you think entrepreneurs and developers can strategically position themselves at the intersection of AI innovation, regulatory compliance, and educational initiatives to shape a more equitable technological future?