Earlier quoted context omitted.
It's not necessarily bad, if it's actually working. The fact that it works on an 8x8 massively pixelated version of the x-ray points to the possibility that it's not actually working, which would be bad if you based patient treatment decisions on an training set that was actually teaching the AI something else entirely.
Huh? What do you mean, not working? That the AI was randomly choosing the correct race 82% of the time by luck? I'm confused by what your implying because it would seem to me that the authors went through many steps to try to pinpoint how the AI was doing this identification and how baffling it was to everyone that even with a lot of x-ray information removed (8x8 pixels compared to say 4k), it somehow was still corr…
Perhaps hospitals that treat a disproportionate share of poor people (which themselves are disproportionately not white), tend to use a different brand of X-ray film, and that brand has different contrast ratios than that of the brand preferred by rich hospitals. Thus, they'd be detecting the different brand of X-ray film rather than anything about the patients themselves.
Of course, at this level it's still hard to imagine generating that 82% hit rate. But maybe there are multiple factors along these lines.