Consider an "AI" that rates the probability of recidivism for prisoners nearing their parole date. That score would then be presented to the parole board, and taken into consideration in determining whether or not to grant parole. If this AI were accidentally/incidentally accurately determining the race of the prisoner, then the output score would take that into account as well. Black men have a recidivism rate significantly higher than other groups[1]. The reasons for the above aside - it's a complex topic, and outside the scope of this analogy - this is extremely undesirable behavior for a process that is intended to remove human biases.
You might then ask, how does this relate to medical imaging? Medical decisions are regularly made based on the expected lifespan of the individual. It makes little sense to aggressively treat leukemia in a patient who is currently undergoing unrelated failure of multiple organs. Similarly it would likely make sense for a healthy 30-year-old to undergo a joint replacement and associated physical therapy, because that person can reasonably be expected to live for an additional 40 years while the same treatment wouldn't make sense for a 70-year-old with long-term chronic issues. This concept is commonly represented as "QALY" - "quality-adjusted life years".
Life expectancy can vary significantly based on race[2].
An AI that evaluates medical imagery that considers QALY in providing a care recommendation may result in a positive indicator for a white hispanic woman and a negative indicator for a black non-hispanic man, with all else being equal and with race as the only differentiator.
In short - it's not necessarily a bad thing for a model to be able to predict the race of the input imagery. The problem is that we don't know why it can do so. Unless we know that, we can't trust that the output is actually measuring what we intend it to be measuring.
1: https://prisoninsight.com/recidivism-the-ultimate-guide/ 2: https://www.cdc.gov/nchs/products/databriefs/db244.htm
If, in your hypothetical recidivism case, an AI "accurately" determined that a pattern of higher recidivism-related features was correlated to race, and was able to determine "accurately" that the specific subset of recidivism-related features predicted race, why would it be wrong to make parole decisions using those recidivism-related features?
edit: imagine I was a teacher who systematically scored people with certain physical characteristics 10% lower than people who didn't have them. Let's say, for example, that I was a stand-up comedy teacher that wasn't amused by women.
If I used an AI trained on that data to choose future admissions (assuming plentiful applicants), I would end up with an all-male class. If this happened throughout the industry (especially noting that the all-male enrollment that I have would supply the teachers of the future), stand-up comedy would simply become a thing that women were seen as not having the aptitude to do, although nobody explicitly ever meant to sabotage women, just to direct them into something that they would have a better chance to succeed in.
> efforts to control [model race-prediction] when it is undesirable will be challenging and demand further study
I mean, sure, there are tons of ways for garbage data to sneak into ML models -- though these guys tried pretty hard to control for that -- but if the model actually determined that "race" is a meaningful feature, then that might be because it is, and science should be concerned with what is, not with what we wish were.