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What is Explainable AI (XAI)?

Explainable AI (XAI) refers to methods that make AI models' predictions and decisions understandable to humans, rather than being 'black boxes.' Regulators, like those in the UK, increasingly demand XAI from financial institutions to ensure fairness and compliance.

WHY IT MATTERS

Essential for regulatory compliance and auditability in BFSI, allowing firms to justify AI-driven decisions to customers and oversight bodies, especially for credit or risk models.

Source: UK regulators warn of new threats · 2026-05-18

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What is Explainable AI (XAI)? — ath