I am not sure what I should think of AI reinforced discrimination.

Some sensitive traits (e.g. Race) have high correlation with something we want to estimate (eg crime rate, credit score). The same traits can be correlated with thousands of different other attributes.

For example, to estimate the risk of loan default, (mathematically) i can use

a) race

b) zip code

c) 3 or 4 seemingly unrelated attributes, but still highly correlated to race

d) a few hundred attributes

e) a few million attributes, taking a PCA and trim down to a few hundred dimensions vector space

When does the discrimination begins or end? (a) is surely illegal, but you can argue (e) is still a proxy to the same thing.

There is no way to cut it fairly. It seems to me any kind of profiling should be illegal