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This paper explores the integration of Explainable Automated Machine Learning (AutoML) in the realm of financial engineering, specifically focusing on its application in credit decision-making. The rapid evolution of Artificial Intelligence…

Risk Management · Quantitative Finance 2024-02-07 Marc Schmitt

Increased adoption and deployment of machine learning (ML) models into business, healthcare and other organisational processes, will result in a growing disconnect between the engineers and researchers who developed the models and the…

Machine Learning · Computer Science 2019-07-09 Iain Barclay , Alun Preece , Ian Taylor , Dinesh Verma

Customers of machine learning systems demand accountability from the companies employing these algorithms for various prediction tasks. Accountability requires understanding of system limit and condition of erroneous predictions, as…

Machine Learning · Computer Science 2021-05-12 Amita Misra , Zhe Liu , Jalal Mahmud

Although "black box" models such as Artificial Neural Networks, Support Vector Machines, and Ensemble Approaches continue to show superior performance in many disciplines, their adoption in the sensitive disciplines (e.g., finance,…

Artificial Intelligence · Computer Science 2019-05-31 Sheikh Rabiul Islam , William Eberle , Sid Bundy , Sheikh Khaled Ghafoor

In this work, we study some novel applications of conformal inference techniques to the problem of providing machine learning procedures with more transparent, accurate, and practical performance guarantees. We provide a natural extension…

Machine Learning · Statistics 2020-07-10 Matthew J. Holland

As the use of black-box models becomes ubiquitous in high stake decision-making systems, demands for fair and interpretable models are increasing. While it has been shown that interpretable models can be as accurate as black-box models in…

Machine Learning · Computer Science 2020-02-19 Ulrich Aïvodji , Julien Ferry , Sébastien Gambs , Marie-José Huguet , Mohamed Siala

It is commonly believed that increasing the interpretability of a machine learning model may decrease its predictive power. However, inspecting input-output relationships of those models using visual analytics, while treating them as…

Machine Learning · Statistics 2016-06-22 Josua Krause , Adam Perer , Enrico Bertini

Complex black-box predictive models may have high performance, but lack of interpretability causes problems like lack of trust, lack of stability, sensitivity to concept drift. On the other hand, achieving satisfactory accuracy of…

Machine Learning · Computer Science 2020-02-12 Alicja Gosiewska , Przemyslaw Biecek

Interpretable machine learning has become a strong competitor for traditional black-box models. However, the possible loss of the predictive performance for gaining interpretability is often inevitable, putting practitioners in a dilemma of…

Machine Learning · Computer Science 2019-05-13 Tong Wang , Qihang Lin

Interpretability has become incredibly important as machine learning is increasingly used to inform consequential decisions. We propose to construct global explanations of complex, blackbox models in the form of a decision tree…

Machine Learning · Computer Science 2019-01-28 Osbert Bastani , Carolyn Kim , Hamsa Bastani

In credit markets, screening algorithms aim to discriminate between good-type and bad-type borrowers. However, when doing so, they can also discriminate between individuals sharing a protected attribute (e.g. gender, age, racial origin) and…

Machine Learning · Statistics 2024-02-09 Christophe Hurlin , Christophe Pérignon , Sébastien Saurin

Credit Scores are ubiquitous and instrumental for loan providers and regulators. In this paper we showcase how micro-loan credit system can be developed in real setting. We show what challenges arise and discuss solutions. Particularly, we…

Machine Learning · Computer Science 2019-05-13 Nikolay Dubina , Dasom Kang , Alex Suh

Financial forecasting increasingly uses large neural network models, but their opacity raises challenges for trust and regulatory compliance. We present several approaches to explainable and reliable AI in finance. \emph{First}, we describe…

Machine Learning · Computer Science 2025-10-31 Albi Isufaj , Pablo Mollá , Helmut Prendinger

A task of interest in machine learning (ML) is that of ascribing explanations to the predictions made by ML models. Furthermore, in domains deemed high risk, the rigor of explanations is paramount. Indeed, incorrect explanations can and…

Artificial Intelligence · Computer Science 2025-07-11 Mohamed Siala , Jordi Planes , Joao Marques-Silva

The rapid integration of artificial intelligence (AI) into various industries has introduced new challenges in governance and regulation, particularly regarding the understanding of complex AI systems. A critical demand from decision-makers…

Machine Learning · Computer Science 2024-11-08 Cristian Munoz , Kleyton da Costa , Bernardo Modenesi , Adriano Koshiyama

The widespread adoption of complex machine learning models in high-stakes domains has brought the "black-box" problem to the forefront of responsible AI research. This paper aims at addressing this issue by improving the Explainable…

Machine Learning · Computer Science 2025-12-02 Isara Liyanage , Uthayasanker Thayasivam

Explainable artificial intelligence and interpretable machine learning are research domains growing in importance. Yet, the underlying concepts remain somewhat elusive and lack generally agreed definitions. While recent inspiration from…

Artificial Intelligence · Computer Science 2022-09-12 Kacper Sokol , Peter Flach

Explainability is important for the transparency of autonomous and intelligent systems and for helping to support the development of appropriate levels of trust. There has been considerable work on developing approaches for explaining…

Artificial Intelligence · Computer Science 2025-02-17 Michael Winikoff , John Thangarajah , Sebastian Rodriguez

Academic research and the financial industry have recently paid great attention to Machine Learning algorithms due to their power to solve complex learning tasks. In the field of firms' default prediction, however, the lack of…

Machine Learning · Statistics 2021-09-02 Lisa Crosato , Caterina Liberati , Marco Repetto

State of the art machine learning algorithms are highly optimized to provide the optimal prediction possible, naturally resulting in complex models. While these models often outperform simpler more interpretable models by order of…

Machine Learning · Statistics 2016-11-24 Yotam Hechtlinger
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