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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

The overarching goal of Explainable AI is to develop systems that not only exhibit intelligent behaviours, but also are able to explain their rationale and reveal insights. In explainable machine learning, methods that produce a high level…

Artificial Intelligence · Computer Science 2020-05-06 Xiuyi Fan , Siyuan Liu , Thomas C. Henderson

Although modern machine learning and deep learning methods allow for complex and in-depth data analytics, the predictive models generated by these methods are often highly complex, and lack transparency. Explainable AI (XAI) methods are…

Machine Learning · Computer Science 2021-06-17 Mythreyi Velmurugan , Chun Ouyang , Catarina Moreira , Renuka Sindhgatta

Financial literacy is increasingly dependent on the ability to interpret complex financial data and utilize advanced forecasting tools. In this context, this study proposes a novel approach that combines transformer-based time series models…

Statistical Finance · Quantitative Finance 2025-06-10 Sukru Selim Calik , Andac Akyuz , Zeynep Hilal Kilimci , Kerem Colak

The lack of explainability of a decision from an Artificial Intelligence (AI) based "black box" system/model, despite its superiority in many real-world applications, is a key stumbling block for adopting AI in many high stakes applications…

Artificial Intelligence · Computer Science 2021-01-26 Sheikh Rabiul Islam , William Eberle , Sheikh Khaled Ghafoor , Mohiuddin Ahmed

Artificial Intelligence/Machine Learning techniques have been widely used in software engineering to improve developer productivity, the quality of software systems, and decision-making. However, such AI/ML models for software engineering…

Software Engineering · Computer Science 2020-12-04 Chakkrit Tantithamthavorn , Jirayus Jiarpakdee , John Grundy

Recent advancements in AI applications to healthcare have shown incredible promise in surpassing human performance in diagnosis and disease prognosis. With the increasing complexity of AI models, however, concerns regarding their opacity,…

Machine Learning · Computer Science 2023-08-17 Munib Mesinovic , Peter Watkinson , Tingting Zhu

Machine Learning explainability techniques have been proposed as a means of `explaining' or interrogating a model in order to understand why a particular decision or prediction has been made. Such an ability is especially important at a…

Machine Learning · Statistics 2022-02-28 Matthew J. Vowels

Rapid development of advanced modelling techniques gives an opportunity to develop tools that are more and more accurate. However as usually, everything comes with a price and in this case, the price to pay is to loose interpretability of a…

Software analytics has been the subject of considerable recent attention but is yet to receive significant industry traction. One of the key reasons is that software practitioners are reluctant to trust predictions produced by the analytics…

Software Engineering · Computer Science 2018-02-05 Hoa Khanh Dam , Truyen Tran , Aditya Ghose

There has recently been a surge of work in explanatory artificial intelligence (XAI). This research area tackles the important problem that complex machines and algorithms often cannot provide insights into their behavior and thought…

Artificial Intelligence · Computer Science 2019-02-05 Leilani H. Gilpin , David Bau , Ben Z. Yuan , Ayesha Bajwa , Michael Specter , Lalana Kagal

Financial forecasting plays an important role in making informed decisions for financial stakeholders, specifically in the stock exchange market. In a traditional setting, investors commonly rely on the equity research department for…

Statistical Finance · Quantitative Finance 2024-07-23 Sahar Arshad , Seemab Latif , Ahmad Salman , Rabia Latif

Artificial intelligence is creating one of the biggest revolution across technology driven application fields. For the finance sector, it offers many opportunities for significant market innovation and yet broad adoption of AI systems…

Risk Management · Quantitative Finance 2022-12-07 Marc Wildi , Branka Hadji Misheva

The rapid development of artificial intelligence methods contributes to their wide applications for forecasting various financial risks in recent years. This study introduces a novel explainable case-based reasoning (CBR) approach without a…

Computational Finance · Quantitative Finance 2021-07-20 Wei Li , Florentina Paraschiv , Georgios Sermpinis

The currently dominating artificial intelligence and machine learning technology, neural networks, builds on inductive statistical learning. Neural networks of today are information processing systems void of understanding and reasoning…

Artificial Intelligence · Computer Science 2022-08-26 Lars Holmberg

In modern business processes, the amount of data collected has increased substantially in recent years. Because this data can potentially yield valuable insights, automated knowledge extraction based on process mining has been proposed,…

Machine Learning · Computer Science 2022-12-02 Riza Velioglu , Jan Philip Göpfert , André Artelt , Barbara Hammer

Explainable artificial intelligence (xAI) is seen as a solution to making AI systems less of a black box. It is essential to ensure transparency, fairness, and accountability, which are especially paramount in the financial sector. The aim…

Artificial Intelligence · Computer Science 2021-11-08 Ouren Kuiper , Martin van den Berg , Joost van der Burgt , Stefan Leijnen

A longstanding challenge surrounding deep learning algorithms is unpacking and understanding how they make their decisions. Explainable Artificial Intelligence (XAI) offers methods to provide explanations of internal functions of algorithms…

Artificial Intelligence · Computer Science 2022-08-16 Amin Nayebi , Sindhu Tipirneni , Brandon Foreman , Chandan K. Reddy , Vignesh Subbian

Explainable AI constitutes a fundamental step towards establishing fairness and addressing bias in algorithmic decision-making. Despite the large body of work on the topic, the benefit of solutions is mostly evaluated from a conceptual or…

Computers and Society · Computer Science 2022-02-15 Carlos Mougan , Georgios Kanellos , Thomas Gottron

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