AI literacy basics
Data, Labels, and Representations
Understand how observations become datasets, labels, features, tokens, and representations—and why each transformation embeds choices and blind spots.
By the end you can
- Explain why data is recorded evidence rather than neutral reality
- Distinguish raw observations, labels, features, proxies, and learned representations
- Recognize coverage gaps, measurement error, and label ambiguity
- Ask the essential questions needed to judge whether data fits an AI task
A dataset is an argument about the world
Data records selected aspects of events through instruments, software, forms, sensors, or human judgment. Some information is preserved. The rest is lost, and what stayed reflects someone’s choice about what was worth recording in the first place.
A dataset is therefore evidence for a task, not reality itself, and its value depends on provenance, measurement quality, coverage, timing, and the connection between the recorded fields and the decision the system has to support.
Instruments carry their own blind spots into the record. Michael Sjoding and colleagues at the University of Michigan published a letter in the New England Journal of Medicine on 17 December 2020. They compared pulse-oximeter readings against arterial blood-gas measurements taken at almost the same moment. Some readings placed a patient in the reassuring 92-to-96% band. Among those, true arterial oxygen saturation was already below 88% in 88 of 749 measurements from Black patients, or 11.7%. The same figure was 99 of 2,778 measurements from White patients, or 3.6%. In a second, multicentre cohort the same comparison gave 17.0% against 6.2%. The devices were working as designed, and every value was written down faithfully. The dataset still understated how sick one group of patients was. The instrument reads light through skin.
“More data” is not a substitute for asking what the data represents and what it leaves invisible.
Example
Labels can be facts, judgments, outcomes, or convenient proxies
The word “label” sounds objective, but labels arise through very different processes.
- Direct observation: a package arrived at 14:06, recorded by a scanner with a known clock and device ID.
- Expert judgment: a radiologist marks an image as suspicious, with uncertainty and possible disagreement.
- Future outcome: a borrower missed a payment within twelve months, observable only after time passes.
- Administrative decision: an application was rejected, which may reflect policy rather than underlying merit.
- Behavioral proxy: a user clicked an article, which may indicate curiosity, confusion, or accidental contact rather than satisfaction.
A label’s meaning depends on how it was produced, not merely on the column name.
Case
Spending as a stand-in for illness, and what it cost
The convenient proxy is not a hypothetical risk. Writing in Science on 25 October 2019, Ziad Obermeyer, Brian Powers, Christine Vogeli and Sendhil Mullainathan dissected a commercial risk-prediction algorithm “typical of this industry-wide approach and affecting millions of patients”. It ranked patients for extra care using predicted health-care cost as its label — a cheap, well-measured, entirely reasonable-looking stand-in for health need. Because less money is spent on Black patients at the same level of illness, the algorithm read them as healthier: at a given risk score, Black patients were considerably sicker than White patients. Redefining the label so that it tracked illness rather than spending raised the share of Black patients flagged for extra help from 17.7% to 46.5%. The authors stated the general lesson plainly: “the choice of convenient, seemingly effective proxies for ground truth can be an important source of algorithmic bias in many contexts.”
Visual
How a real event becomes model input
AI systems rarely consume “the world” directly. They consume a chain of representations, each with its own loss and assumptions.
- 01
Event or object
A conversation, transaction, image, movement, document, person, or physical condition exists in context.
- 02
Measurement
Sensors, logs, forms, or observers record selected signals with error and missingness.
- 03
Record and schema
Software turns measurements into rows, fields, timestamps, files, or event streams.
- 04
Model representation
Features, tokens, pixels, embeddings, or graph structures expose patterns to the model.
- 05
Learned internal state
The fitted model develops parameters and representations optimized for its objective.
Every transformation creates the possibility of mismatch between what matters and what the model can see.
Comparison
Observed, missing, and constructed information
Data problems are not limited to blank cells. A complete-looking record can still omit the most important variable or encode it poorly.
Observed
A variable was recorded through a known process.
- May still contain measurement error
- Timing and units must be understood
- Coverage may differ across groups
- Example: transaction amount
Missing
A value was not recorded or is unavailable at the required time.
- Missingness may carry information
- Causes can be systematic
- Imputation adds assumptions
- Example: absent income documentation
Constructed
A feature or label was derived through rules, aggregation, or human interpretation.
- Can be useful and reproducible
- May encode policy or proxy bias
- Needs versioned definitions
- Example: “high-value customer” flag
Key idea
Gender Shades: who was missing from the benchmark
A complete-looking dataset can also omit people. In “Gender Shades”, presented at the 2018 Conference on Fairness, Accountability and Transparency (PMLR vol. 81, pages 77–91), Joy Buolamwini and Timnit Gebru reported that two standard face benchmarks were “overwhelmingly composed of lighter-skinned subjects (79.6% for IJB-A and 86.2% for Adience)”. Not one cell in them was blank. Evaluated instead on a deliberately balanced set of portraits of parliamentarians, three commercial gender classifiers misread darker-skinned women in up to 34.7% of cases, while the maximum error rate for lighter-skinned males was 0.8%.
Position
Most “biased AI” is a label somebody chose
The phrase suggests a machine that acquired a prejudice. What usually happened is smaller, earlier and more fixable: somebody needed a measurable stand-in for something that cannot be measured directly, picked the one already sitting in the data, and the stand-in carried the inequity of the process that produced it.
Obermeyer's case is the clean example — spending used as a proxy for need, inside a system that spent less on some patients for reasons unrelated to how ill they were. No line of code expressed a preference. Gender Shades is the other half of the same problem: not a wrong label but an absent population, in the benchmark everyone else was scoring against. Both were decisions taken by people, early, usually without a meeting. That is the encouraging part, and the reason to insist on the distinction: a decision can be revisited, while “the model is biased” has nowhere to go.
Ask what the label actually measures before you ask whether the model is fair.
Key idea
“Ground truth” may contain disagreement
Some tasks have clear outcomes. Whether a shipment arrived before its deadline is one of them. Other tasks are interpretation all the way down: toxicity, relevance, quality, intent, pain, or risk.
For subjective or contested tasks, disagreement is not always noise to eliminate; it may reveal different perspectives, ambiguous instructions, or a concept that cannot honestly be reduced to one label.
Even the datasets that arbitrate everyone else’s results contain contested labels. Curtis Northcutt, Anish Athalye and Jonas Mueller reported in 2021 on ten of the most heavily used vision, language and audio datasets. They re-inspected the test sets. They flagged candidate mistakes algorithmically and then put each one to human review. That review confirmed 51% of the flagged candidates as genuinely mislabelled. They report “an average of at least 3.3% errors across the 10 datasets, where for example label errors comprise at least 6% of the ImageNet validation set”. The consequence is not cosmetic. On ImageNet with corrected labels the smaller ResNet-18 outperforms ResNet-50 “if the prevalence of originally mislabeled test examples increases by just 6%”. A benchmark ranking can therefore be an artefact of its own label noise.
A single label can hide uncertainty that the final system should preserve.
Steps
Questions to ask before trusting a dataset
A beginner does not need to audit every row. A small set of questions can expose the main assumptions quickly.
Asking them in a fixed order is a documented practice rather than an improvisation. “Datasheets for Datasets” was first posted in March 2018. Its authors are Timnit Gebru, Jamie Morgenstern, Briana Vecchione, Jennifer Wortman Vaughan, Hanna Wallach, Hal Daumé III and Kate Crawford. It was published in Communications of the ACM in December 2021. The habit is borrowed from electronics. No engineer there specifies a component without reading the datasheet that states its operating conditions and tested tolerances. The proposal is as plain: “we propose that every dataset be accompanied with a datasheet that documents its motivation, composition, collection process, recommended uses, and so on.”
- 1
Who and what is represented?
Inspect populations, environments, devices, languages, time periods, and important exclusions.
- 2
How was each field produced?
Trace sensors, logging logic, annotation instructions, and derived definitions.
- 3
When was it available?
Separate event time from the time information became usable for a real decision.
- 4
What does the label mean?
Distinguish observed outcome, expert judgment, administrative action, and behavioral proxy.
- 5
What changed after collection?
Check cleaning, filtering, deduplication, sampling, aggregation, and version history.
- 6
Where will deployment differ?
Name likely shifts in users, devices, incentives, geography, policy, or time.
Analogy
One lens, one moment, and the photographer who chose both
A photograph of a crowded street, taken through one lens at one moment, can be detailed and still omit sounds, events behind the camera, earlier causes, and what happens next.
A dataset resembles that photograph: useful evidence shaped by viewpoint, instrument, timing, and selection. A photograph has one viewpoint you can name. Datasets combine many records and transformations, which makes theirs much harder to find.
Data quality includes the framing of the evidence, not only the sharpness of each record.
What this lesson deliberately leaves for later
Later paths examine feature engineering, embeddings, data pipelines, labeling operations, imbalance, leakage, and augmentation in detail. Here you need one thing. Model behavior is constrained by the evidence that was recorded and by how it is represented.
When an AI system fails, “the model made a mistake” is often an incomplete diagnosis: the system may have measured the wrong thing, learned from the wrong population, or optimized a label that never captured the real goal.
A systematic review shows how often that fuller diagnosis is the right one. Michael Roberts and the AIX-COVNET collaboration reported in Nature Machine Intelligence in March 2021. They screened 2,212 papers that used machine learning to detect or prognosticate for COVID-19 from chest radiographs and CT scans. They kept 415 after initial screening. Their conclusion was that “none of the models identified are of potential clinical use due to methodological flaws and/or underlying biases”. The recurring faults were data faults. “Frankenstein” datasets were assembled and merged out of other datasets until the original results could no longer be reproduced. Control groups did not match the cases. In one repeated design the COVID-positive images came from adults, while the non-COVID comparison images came from a public paediatric dataset. Roberts put the consequence plainly: “since children are far less likely to get COVID-19 than adults, all the machine learning model could usefully do was to tell the difference between children and adults”.
Data questions are product questions because data determines what behavior can be learned and evaluated.
Key takeaways
- Data is recorded evidence shaped by measurement, selection, timing, schema, and human judgment.
- Labels may represent direct observations, expert judgments, delayed outcomes, administrative actions, or behavioral proxies.
- Features, tokens, pixels, and embeddings are representations that expose some structure while losing other context.
- Missingness, measurement error, and coverage gaps can be systematic rather than random defects.
- Disagreement can reveal ambiguity or contested concepts that should not be hidden behind one label.
- A useful dataset review asks who is represented, how fields were produced, when they were available, and how deployment will differ.