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In recent years, there has been an explosion of AI research on counterfactual explanations as a solution to the problem of eXplainable AI (XAI). These explanations seem to offer technical, psychological and legal benefits over other…

Machine Learning · Computer Science 2021-05-03 Mark T Keane , Eoin M Kenny , Eoin Delaney , Barry Smyth

This paper explores the journey of AI in finance, with a particular focus on the crucial role and potential of Explainable AI (XAI). We trace AI's evolution from early statistical methods to sophisticated machine learning, highlighting…

Statistical Finance · Quantitative Finance 2023-06-06 Barry Quinn

Explainable Artificial Intelligence (XAI) aims to make machine learning models transparent and trustworthy, yet most current approaches communicate explanations visually or through text. This paper introduces an information theoretic…

Human-Computer Interaction · Computer Science 2026-02-10 Mona Rajhans , Vishal Khawarey

Explaining the predictions of a deep neural network is a nontrivial task, yet high-quality explanations for predictions are often a prerequisite for practitioners to trust these models. Counterfactual explanations aim to explain predictions…

Machine Learning · Computer Science 2025-01-16 Andreas Abildtrup Hansen , Paraskevas Pegios , Anna Calissano , Aasa Feragen

Machine learning models need to provide contrastive explanations, since people often seek to understand why a puzzling prediction occurred instead of some expected outcome. Current contrastive explanations are rudimentary comparisons…

Human-Computer Interaction · Computer Science 2022-03-30 Wencan Zhang , Brian Y. Lim

While AI algorithms have shown remarkable success in various fields, their lack of transparency hinders their application to real-life tasks. Although explanations targeted at non-experts are necessary for user trust and human-AI…

Artificial Intelligence · Computer Science 2024-02-12 Jasmina Gajcin , Ivana Dusparic

The necessity for interpretability in natural language processing (NLP) has risen alongside the growing prominence of large language models. Among the myriad tasks within NLP, text generation stands out as a primary objective of…

Computation and Language · Computer Science 2024-05-15 Kenza Amara , Rita Sevastjanova , Mennatallah El-Assady

Explainable Artificial Intelligence (XAI) has experienced a significant growth over the last few years. This is due to the widespread application of machine learning, particularly deep learning, that has led to the development of highly…

Artificial Intelligence · Computer Science 2020-10-13 Giulia Vilone , Luca Longo

Explainable Artificial Intelligence (XAI) is becoming increasingly essential for enhancing the transparency of machine learning (ML) models. Among the various XAI techniques, counterfactual explanations (CFs) hold a pivotal role due to…

Machine Learning · Computer Science 2026-01-29 Fatima Ezzeddine , Obaida Ammar , Silvia Giordano , Omran Ayoub

Big Data has become central to modern applications in finance, insurance, and cybersecurity, enabling machine learning systems to perform large-scale risk assessments and fraud detection. However, the increasing dependence on automated…

Machine Learning · Computer Science 2025-12-19 Ayush Jain , Rahul Kulkarni , Siyi Lin

Counterfactual explanations promote explainability in machine learning models by answering the question "how should an input instance be perturbed to obtain a desired predicted label?". The comparison of this instance before and after…

Machine Learning · Computer Science 2022-11-09 Jing Ma , Ruocheng Guo , Saumitra Mishra , Aidong Zhang , Jundong Li

Machine learning systems have become popular in fields such as marketing, financing, or data mining. While they are highly accurate, complex machine learning systems pose challenges for engineers and users. Their inherent complexity makes…

Computers and Society · Computer Science 2019-07-31 Andrea Papenmeier , Gwenn Englebienne , Christin Seifert

In this work, I discuss how Large Language Models can be applied in the legal domain, circumventing their current drawbacks. Despite their large success and acceptance, their lack of explainability hinders legal experts to trust in their…

Computation and Language · Computer Science 2023-11-28 Sabine Wehnert

Counterfactual explanations play a pivotal role in explainable artificial intelligence (XAI) by offering intuitive, human-understandable alternatives that elucidate machine learning model decisions. Despite their significance, existing…

Machine Learning · Computer Science 2025-11-06 Oleksii Furman , Ulvi Movsum-zada , Patryk Marszalek , Maciej Zięba , Marek Śmieja

Explaining firm decisions made by algorithms in customer-facing applications is increasingly required by regulators and expected by customers. While the emerging field of Explainable Artificial Intelligence (XAI) has mainly focused on…

Human-Computer Interaction · Computer Science 2021-07-07 Yanou Ramon , Tom Vermeire , Olivier Toubia , David Martens , Theodoros Evgeniou

This paper is a note on new directions and methodologies for validation and explanation of Machine Learning (ML) models employed for retail credit scoring in finance. Our proposed framework draws motivation from the field of Artificial…

Machine Learning · Statistics 2020-09-01 Masoud Hashemi , Ali Fathi

One of the prominent methods for explaining the decision of a machine-learning classifier is by a counterfactual example. Most current algorithms for generating such examples in the textual domain are based on generative language models.…

Machine Learning · Computer Science 2023-12-19 Daniel Gilo , Shaul Markovitch

Explainable Artificial Intelligence (XAI) techniques are frequently required by users in many AI systems with the goal of understanding complex models, their associated predictions, and gaining trust. While suitable for some specific tasks…

Human-Computer Interaction · Computer Science 2023-03-22 Savio Rozario , George Čevora

The application of AI in finance is increasingly dependent on the principles of responsible AI. These principles - explainability, fairness, privacy, accountability, transparency and soundness form the basis for trust in future AI systems.…

Machine Learning · Computer Science 2022-06-07 Charl Maree , Jan Erik Modal , Christian W. Omlin

Artificial Intelligence (AI) has created the single biggest technology revolution the world has ever seen. For the finance sector, it provides great opportunities to enhance customer experience, democratize financial services, ensure…

Risk Management · Quantitative Finance 2021-03-02 Branka Hadji Misheva , Joerg Osterrieder , Ali Hirsa , Onkar Kulkarni , Stephen Fung Lin