{"id":8038,"date":"2025-12-19T11:09:12","date_gmt":"2025-12-19T11:09:12","guid":{"rendered":"https:\/\/today.aom.org\/?p=8038"},"modified":"2026-01-22T10:03:56","modified_gmt":"2026-01-22T10:03:56","slug":"beware-of-ais-amorality-before-making-ethical-decisions","status":"publish","type":"post","link":"https:\/\/www.aom.org\/today\/beware-of-ais-amorality-before-making-ethical-decisions\/","title":{"rendered":"Beware of AI\u2019s Amorality before Making Ethical Decisions"},"content":{"rendered":"

By Nick Keppler<\/a><\/p>\n

In 2016, a governmental administration headed by Australia\u2019s Liberal Party\u2014which is ironically socially and politically conservative\u2014promised to save taxpayers<\/a> AU$1.7 billion (the equivalent of about $2.2 billion in U.S. dollars) by reigning in overpayments to welfare recipients.<\/p>\n

To achieve this, the country\u2019s Department of Social Services automated the system by which it tracked and collected overpayments. An AI algorithm compared payments to the income of welfare recipients, as reported to the tax office. It then calculated supposed overpayments and generated and sent debt notices. From 2016 to 2019, the government collected AU$1.73 billion in alleged overpayments from approximately 433,000 Australians.<\/p>\n

The plan was a disaster<\/a>, decried in the Australian media as \u201cthe Robodebt scandal.\u201d Welfare beneficiaries, who are some of the country\u2019s poorest citizens, were racked with anxiety over the debt notices, many of which demanded money they did not actually owe; a court found that AU$751 million was wrongly recovered from around 381,000 people. The same court deemed the whole process illegal. A special commission concluded<\/a> that \u201cRobodebt was a crude and cruel mechanism, neither fair nor legal, and it made many people feel like criminals.\u201d The government paid a settlement of AU$1.2 billion.<\/p>\n

It is a cautionary tale for utilizing artificial intelligence in decisions that have a moral or ethical component<\/a>, said Academy of Management Scholar Dirk Lindebaum<\/a> of the University of Bath.<\/p>\n

The fact that a lawsuit toppled the \u201cRobodebt\u201d system makes for \u201ca quite remarkable story, because normally David loses against the technical Goliath,\u201d he said.<\/p>\n

In recent years, institutions have scrambled to implement AI for a vast span of purposes, hoping for better efficiency. Often this technology is promoted to help decision making<\/a>. But AI shows its limitations in situations that require genuine human judgment applied to, for instance, the wellbeing of human beings, Lindebaum said.<\/p>\n

The technology is \u201cpremised on the logic of statistical probabilities,\u201d he said and has no understanding of deeper meanings of the concepts it juggles, mashes together, and regurgitates. Its ultimately superficial recitation of potential solutions to a conundrum is insufficient for making decisions about fair treatment of employees or other stakeholders that an organization\u2019s actions affect\u2014moral decisions that demand context, empathy, and judgment calls concerning contradicting values shouldn\u2019t be automated or based on AI outputs alone.<\/p>\n

\u201cPeople bring a lot of very different kinds of knowledge to the table,\u201d said Lindebaum. \u201cIt’s multi-dimensional.<\/p>\n

\u201cThere are cases when the technology is superbly suited to assist humans in decision making (for example, in the case of pattern recognition), but there are other cases where we should be very, very careful and not use the technology, and these are situations where the fate, life trajectories, lives, and livelihoods of people at stake.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

By Nick Keppler In 2016, a governmental administration headed by Australia\u2019s Liberal Party\u2014which is ironically socially and politically conservative\u2014promised to save taxpayers AU$1.7 billion (the equivalent of about $2.2 billion in U.S. dollars) by reigning in overpayments to welfare recipients. To achieve this, the country\u2019s Department of Social Services automated the system by which it […]<\/p>\n","protected":false},"author":12,"featured_media":7973,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[343,72,78,342],"tags":[],"sp_smart_badges":[],"ppma_author":[840],"class_list":["post-8038","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ai","category-ethics","category-policy","category-technology"],"acf":[],"yoast_head":"\nBeware of AI\u2019s Amorality before Making Ethical Decisions - Academy of Management Today<\/title>\n<meta name=\"description\" content=\"Think twice before utilizing artificial intelligence in decisions that have a moral or ethical component due to AI's amorality.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.aom.org\/today\/beware-of-ais-amorality-before-making-ethical-decisions\/\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Nick Keppler\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.aom.org\\\/today\\\/beware-of-ais-amorality-before-making-ethical-decisions\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.aom.org\\\/today\\\/beware-of-ais-amorality-before-making-ethical-decisions\\\/\"},\"author\":{\"name\":\"Nick Keppler\",\"@id\":\"https:\\\/\\\/www.aom.org\\\/today\\\/#\\\/schema\\\/person\\\/1b8aff6a6e3f22d0d813c97e6aab7149\"},\"headline\":\"Beware of AI\u2019s Amorality before Making Ethical Decisions\",\"datePublished\":\"2025-12-19T11:09:12+00:00\",\"dateModified\":\"2026-01-22T10:03:56+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.aom.org\\\/today\\\/beware-of-ais-amorality-before-making-ethical-decisions\\\/\"},\"wordCount\":466,\"image\":{\"@id\":\"https:\\\/\\\/www.aom.org\\\/today\\\/beware-of-ais-amorality-before-making-ethical-decisions\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.aom.org\\\/today\\\/wp-content\\\/uploads\\\/2025\\\/10\\\/AI-is-transforming-society-raising-important-ethics-questions.-Ethics-in-AI-design-ensures-fairness_cropped-scaled.jpg\",\"articleSection\":[\"AI\",\"ETHICS\",\"POLICY\",\"TECHNOLOGY\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.aom.org\\\/today\\\/beware-of-ais-amorality-before-making-ethical-decisions\\\/\",\"url\":\"https:\\\/\\\/www.aom.org\\\/today\\\/beware-of-ais-amorality-before-making-ethical-decisions\\\/\",\"name\":\"Beware of AI\u2019s Amorality before Making Ethical Decisions - 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