Decisioning & AI
What is explainable AI (XAI)?
Artificial intelligence models and techniques designed to produce human-understandable explanations for their predictions and decisions. In regulated financial services, explainability is essential for meeting fair lending requirements, satisfying regulatory examinations, supporting adverse action notices, and enabling analysts to understand and trust model outputs. XAI bridges the gap between model accuracy and regulatory transparency.
How it works
Example: When a credit application is declined, the explainable AI system generates a plain-language adverse action notice stating the top three contributing factors: insufficient credit history, high debt-to-income ratio, and short time at current address.


