AI Economics: Bias Costs — Regulatory Fines, Legal Liability, and the Economics of Reputational Damage

Zenodo (CERN European Organization for Nuclear Research) 2026 Preprint Open access

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Authors: Oleh Ivchenko
DOI: 10.5281/zenodo.18627663
Cited by: 0

Abstract

Algorithmic bias represents one of the most economically significant risks in enterprise AI deployment, yet its true costs remain chronically underestimated in project planning. This article presents a comprehensive economic analysis of bias-related costs spanning regulatory penalties, legal liability, remediation expenses, and the often-catastrophic impact of reputational damage.

Fields of Study & Subjects

Ethics and Social Impacts of AI Digitalization Law and Regulation Impact of AI and Big Data on Business and Society

Publication details

Journal / source
Zenodo (CERN European Organization for Nuclear Research)
Publication date
13 February 2026
Language
EN
Document type
Preprint