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Related papers: Towards Explainable and Reliable AI in Finance

200 papers

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

Deploying machine learning in regulated financial environments -- credit risk, fraud detection, and anti-money laundering -- exposes critical vulnerabilities in algorithmic reproducibility. While early financial ML addressed statistical…

Artificial Intelligence · Computer Science 2026-05-28 Ruizhe Zhou , Xiaoyang Liu , Gaoyuan Du , Yi Zheng , Shouxi Ren , Deepayan Chakrabarti , Dengdu Jiang

Large Language Models (LLMs) offer a promising approach to enhancing Explainable AI (XAI) by transforming complex machine learning outputs into easy-to-understand narratives, making model predictions more accessible to users, and helping…

Artificial Intelligence · Computer Science 2025-04-02 Ahsan Bilal , David Ebert , Beiyu Lin

Large Language Models (LLMs) have played a pivotal role in advancing Artificial Intelligence (AI). However, despite their achievements, LLMs often struggle to explain their decision-making processes, making them a 'black box' and presenting…

Computation and Language · Computer Science 2025-06-30 Avash Palikhe , Zhenyu Yu , Zichong Wang , Wenbin Zhang

The financial industry faces a significant challenge modeling and risk portfolios: balancing the predictability of advanced machine learning models, neural network models, and explainability required by regulatory entities (such as Office…

Machine Learning · Computer Science 2025-11-10 Rongbin Ye , Jiaqi Chen

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

This systematic review examines how machine learning (ML) and deep learning (DL) have transformed forecasting, decision-making, and financial modelling, promoting innovation and efficiency in financial systems. Following PRISMA 2020…

General Mathematics · Mathematics 2026-01-26 Soufiane El Amine El Alami , Abderazzak Mouiha , Abdelatif Hafid , Ahmed El Hilali Alaoui

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 major concern of Machine Learning (ML) models is their opacity. They are deployed in an increasing number of applications where they often operate as black boxes that do not provide explanations for their predictions. Among others, the…

Machine Learning · Computer Science 2022-11-10 Pepa Atanasova

Fraudulent transactions and how to detect them remain a significant problem for financial institutions around the world. The need for advanced fraud detection systems to safeguard assets and maintain customer trust is paramount for…

Machine Learning · Computer Science 2023-12-22 Tomisin Awosika , Raj Mani Shukla , Bernardi Pranggono

Generative AI and Large Language Models (LLMs) hold promise for automating spreadsheet formula creation. However, due to hallucinations, bias and variable user skill, outputs obtained from generative AI cannot be assumed to be accurate or…

Human-Computer Interaction · Computer Science 2025-01-20 Simon Thorne

Public and nonprofit organizations often hesitate to adopt AI tools because most models are opaque even though standard approaches typically analyze aggregate patterns rather than offering actionable, case-level guidance. This study tests a…

Computers and Society · Computer Science 2025-10-23 Ji Ma , Albert Casella

Artificial intelligence (AI) enables machines to learn from human experience, adjust to new inputs, and perform human-like tasks. AI is progressing rapidly and is transforming the way businesses operate, from process automation to cognitive…

Machine Learning · Computer Science 2021-12-17 Ambreen Hanif

Financial institutions increasingly require AI explanations that are persistent, cross-validated across methods, and conversationally accessible to human decision-makers. We present an architecture for human-centered explainable AI in…

Artificial Intelligence · Computer Science 2026-05-13 Georgios Makridis , Georgios Fatouros , John Soldatos , George Katsis , Dimosthenis Kyriazis

Artificial Intelligence (AI) is rapidly integrating into various aspects of our daily lives, influencing decision-making processes in areas such as targeted advertising and matchmaking algorithms. As AI systems become increasingly…

Artificial Intelligence · Computer Science 2025-03-11 Md. Tanzib Hosain , Mehedi Hasan Anik , Sadman Rafi , Rana Tabassum , Khaleque Insia , Md. Mehrab Siddiky

Modern data analytics underpinned by machine learning techniques has become a key enabler to the automation of data-led decision making. As an important branch of state-of-the-art data analytics, business process predictions are also faced…

Artificial Intelligence · Computer Science 2021-07-22 Chun Ouyang , Renuka Sindhgatta , Catarina Moreira

Traditional machine learning models often prioritize predictive accuracy, often at the expense of model transparency and interpretability. The lack of transparency makes it difficult for organizations to comply with regulatory requirements…

Machine Learning · Computer Science 2025-05-16 Fahad Almalki , Mehedi Masud

This paper explores the potential of large language models (LLMs) to generate financial reports from time series data. We propose a framework encompassing prompt engineering, model selection, and evaluation. We introduce an automated…

Computation and Language · Computer Science 2025-07-02 Elizabeth Fons , Elena Kochkina , Rachneet Kaur , Zhen Zeng , Berowne Hlavaty , Charese Smiley , Svitlana Vyetrenko , Manuela Veloso

With the availability of large databases and recent improvements in deep learning methodology, the performance of AI systems is reaching or even exceeding the human level on an increasing number of complex tasks. Impressive examples of this…

Artificial Intelligence · Computer Science 2017-08-29 Wojciech Samek , Thomas Wiegand , Klaus-Robert Müller

Generative AI, particularly large language models (LLMs), is beginning to transform the financial industry by automating tasks and helping to make sense of complex financial information. One especially promising use case is the automatic…

Statistical Finance · Quantitative Finance 2025-11-11 Zonghan Wu , Congyuan Zou , Junlin Wang , Chenhan Wang , Hangjing Yang , Yilei Shao