The growing reliance of machine learning models in high-stakes, highly regulated domains such as finance and insurance has created a growing tension between predictive performance, interpretability, and regulatory fairness requirements. In these settings, models are expected not only to deliver reliable predictions but also to provide transparent decision rationales and comply with strict fairness requirements. Attention-based transformers offer powerful mechanisms for modeling complex data relationships as demonstrated in various language tasks, yet their attention mechanisms alone do not ensure counterfactually fair predictions, even when combined with fairness-aware techniques. To address these limitations, we propose the Feature Correlation Transformer (FCorrTransformer), an attention-light architecture tailored for tabular data. In this design, the attention matrix admits a direct statistical interpretation as pairwise feature dependencies, enhancing both interpretability and efficiency. Leveraging this structure, we introduce Counterfactual Attention Regularization (CAR), a framework that enforces group-invariant fair representations of sensitive features at the attention level, promoting counterfactually fair predictions without relying on explicit causal assumptions. Empirical evaluations on imbalanced classification and regression benchmarks demonstrate that FCorrTransformer combined with CAR achieves strong counterfactual fairness while maintaining competitive predictive performance and substantially reducing model complexity compared with standard transformer-based baselines. Overall, this work bridges a critical gap between fairness theory and machine learning models, offering a practical framework for responsible AI in regulatory-sensitive domains.
Machine learning algorithms in socially sensitive domains (e.g., credit decisions) often focus on equalizing predictive outcomes. However, satisfying these metrics does not guarantee that models use the same reasoning for different groups. We show that existing outcome-fair models can still apply fundamentally different reasoning to individuals, a hidden procedural bias'' missed by standard fairness metrics and algorithms. We propose Counterfactual Explanation Consistency (CEC), a framework that detects and mitigates this bias by aligning feature attributions between individuals and their counterfactual counterparts. Key contributions include a nearest-neighbor counterfactual generation method, a modified baseline for integrated gradient comparisons, an individual-level procedural fairness metric, and a corresponding training loss. We introduce a taxonomy identifying Regime B'' (same outcome, different reasoning) as a critical blind spot. Experiments on synthetic data, German Credit, Adult Income, and HMDA mortgage data demonstrate that outcome-fair baselines exhibit substantial hidden bias, while CEC substantially reduces it with modest utility cost.
Machine learning models often inherit biases from historical data, raising critical concerns about fairness and accountability. Conventional fairness interventions typically require access to sensitive attributes like gender or race, but privacy and legal restrictions frequently limit their use. To address this challenge, we propose a framework that infers sensitive attributes from auxiliary features and integrates fairness constraints into model training. Our approach mitigates bias while preserving predictive accuracy, offering a practical solution for fairness-aware learning. Empirical evaluations validate its effectiveness, contributing to the advancement of more equitable algorithmic decision-making.
We consider the problem of learning a counterfactually fair regressor. We adopt a causal uncertainty view in which counterfactual fairness is defined with resampled noise. We focus on obtaining theoretical fairness guarantees for a new post-processing estimator. We begin by showing that counterfactual fairness is equivalent to satisfying demographic parity conditional on the latent variable. This allows us to provide a closed-form expression of the optimal fair regressor via a barycentric quantile map. In order to handle continuous latent variables, we propose a discretized post-processing method. Then, under mild regularity assumptions, we prove high-probability finite-sample fairness guarantees for our estimator, providing an unfairness decay at rate O~(n−1/3), and establishing a matching risk bound of order O~(n−1/3). We provide a matching lower bound on the excess risk of almost fair predictions. Finally, we extend our results to the setting of relaxed counterfactual fairness. We validate our approach on real-world and synthetic data.