← AI Glossary

Proxy Variable

A variable in an AI model that is correlated with a protected attribute and can inadvertently introduce bias even when the protected attribute is excluded from the model.

In plain language

A sneaky stand-in for a protected attribute. An AI might not use "race" directly, but if it uses "postcode", which is closely linked to race in many areas, it can still discriminate indirectly.

Why this matters

Proxy variables are a hidden source of bias risk that can undermine compliance efforts and expose your organisation to discrimination claims. Your AI governance processes should include systematic checks for proxy discrimination, particularly in high-risk decision-making systems affecting employment, credit or service access.

Relevance

Implementation

Development teams must actively test AI systems for proxy discrimination during model validation, requiring technical governance controls and documented assessment processes before deployment.

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