Meta turns to VRS AI algorithm for tackling ad-based discrimination – Times of India

Back in 2019, Meta (formerly Facebook) was summoned in court for allowing housing discrimination on its platform through targeted ads. The tech giant faced charges for letting advertisers violate the Fair Housing Act using the “Special Ad Audiences” feature. The dust from that lawsuit finally settled last year when Meta removed the aforementioned feature and replaced it with a new AI algorithm called “Variance Reduction System (VRS).”
Fast forward to the present, Meta has now revealed that VRS has come into effect in the United States. This new algorithm tweaks the ad system in a way that allows advertisers to reach their target audience while avoiding unintentional discrimination against other groups.

How VRS works
VRS is Meta’s remedy for ad-based discrimination. The AI algorithm runs as soon as an ad goes live and comes into action once the ad has reached a certain number of users. At this point, it compares the advertiser’s target demographic with the aggregate demographic of users reached. If there’s a mismatch or room for improvement, VRS will increase the ad auction value to show it to more people and eventually cover the desired demographic.
All in all, this new ad algorithm forces the advertiser to modify their ad bids to reach a larger pool and hence penetrate into its target group. Another way to put it would be saying that advertisers can no longer ostracize certain social groups from their ad campaigns.

Improved ad targeting without compromising privacy
When we talk of VRS analysing user demographics, the inevitable question of privacy arises. To address this, Meta has built a “noise” technology into this algorithm which prevents individual information from seeping into the AI’s grasp.
Right now, VRS only works for housing ads displayed in the US. There are plans for the new system to incorporate ads related to employment and credit as well.
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