Rights & Ethics
Material decisions
Outcomes with direct substantial impacts on customers.
Definition
Decisions whose outcomes have direct and substantial impacts on customers—examples include credit refusals, insurance denials, and investment suitability determinations—where heightened explainability, remediation and supervisory safeguards are expected.
Related Terms
Material Decision
Outcome with direct and substantial impact on a customer....
material impact
Customer or market-facing effects causing measurable harm....
Material AI system
An AI application with significant impact or regulatory relevance....
materiality
Impact on customers, operations, financial soundness or market integrity....
critical decisions
High-risk subset of significant decisions with severe consequences....