What term describes the practice of designing AI in a fair and transparent manner?

The term that describes the practice of designing AI in a fair and transparent manner is Ethical AI. This concept focuses on ensuring that artificial intelligence systems operate without discrimination, are understandable to users, and promote social good. Ethical AI encompasses various principles, including fairness, accountability, and transparency, ensuring that AI technologies serve all individuals equitably and do not perpetuate biases or harm marginalized groups.

In designing AI systems, developers seek to implement practices that prioritize ethical considerations, thereby addressing concerns related to biased algorithms, which can lead to unfair treatment of certain individuals or groups. This commitment to ethical standards is crucial in building public trust in AI technologies, making it an essential focus in the field.

The other options relate to important aspects of AI but do not specifically encapsulate the overarching goal of fairness and transparency. Algorithmic Bias refers to the unintended discrimination that can arise from AI models, while Inference relates to the conclusions drawn from data or predictions made by AI systems. Data Privacy emphasizes the protection of individuals' personal information but does not specifically address fairness in AI design.