Related papers: Explaining Credit Risk Scoring through Feature Con…

In the financial risk domain, particularly in credit default prediction and fraud detection, accurate identification of high-risk class instances is paramount, as their occurrence can have significant economic implications. Although machine…

We consider the paradigm of a black box AI system that makes life-critical decisions. We propose an "arguing machines" framework that pairs the primary AI system with a secondary one that is independently trained to perform the same task.…

AI explainability improves the transparency of models, making them more trustworthy. Such goals are motivated by the emergence of deep learning models, which are obscure by nature; even in the domain of images, where deep learning has…

Aligning AI systems with organizational decision-making is typically framed as a single-target problem: make the model behave like the organization. We argue this framing obscures a deeper pluralistic challenge. We rely on a decision-policy…

Recent AI-related scandals have shed a spotlight on accountability in AI, with increasing public interest and concern. This paper draws on literature from public policy and governance to make two contributions. First, we propose an AI…

Effective credit risk management is fundamental to financial decision-making, requiring robust models to predict default probabilities and classify financial entities. Traditional machine learning approaches face significant challenges when…

Artificial intelligence (AI) is gaining momentum, and its importance for the future of work in many areas, such as medicine and banking, is continuously rising. However, insights on the effective collaboration of humans and AI are still…

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.…

The rapid growth of Artificial Intelligence (AI) has underscored the urgent need for responsible AI practices. Despite increasing interest, a comprehensive AI risk assessment toolkit remains lacking. This study introduces our Responsible AI…

The risk of a credit portfolio depends crucially on correlations between the probability of default (PD) in different economic sectors. Often, PD correlations have to be estimated from relatively short time series of default rates, and the…

One of the main tasks of actuaries and data scientists is to build good predictive models for certain phenomena such as the claim size or the number of claims in insurance. These models ideally exploit given feature information to enhance…

As machine learning increasingly influences critical domains such as credit underwriting, public policy, and talent acquisition, ensuring compliance with fairness constraints is both a legal and ethical imperative. This paper introduces a…

The rationale behind a deep learning model's output is often difficult to understand by humans. EXplainable AI (XAI) aims at solving this by developing methods that improve interpretability and explainability of machine learning models.…

In an era characterized by the pervasive integration of artificial intelligence into decision-making processes across diverse industries, the demand for trust has never been more pronounced. This thesis embarks on a comprehensive…

A central problem in business concerns the optimal allocation of limited resources to a set of available tasks, where the payoff of these tasks is inherently uncertain. In credit card fraud detection, for instance, a bank can only assign a…

Efficient credit assignment is essential for reinforcement learning algorithms in both prediction and control settings. We describe a unified view on temporal-difference algorithms for selective credit assignment. These selective algorithms…

Explainable machine learning (XML) has emerged as a major challenge in artificial intelligence (AI). Although black-box models such as Deep Neural Networks and Gradient Boosting often exhibit exceptional predictive accuracy, their lack of…

As machine learning models grow more complex and their applications become more high-stakes, tools for explaining model predictions have become increasingly important. This has spurred a flurry of research in model explainability and has…

Artificial intelligence develops techniques and systems whose performance must be evaluated on a regular basis in order to certify and foster progress in the discipline. We will describe and critically assess the different ways AI systems…

The rapid advancement and widespread adoption of machine learning-driven technologies have underscored the practical and ethical need for creating interpretable artificial intelligence systems. Feature importance, a method that assigns…