What Is Explainable AI?
Explainable AI (XAI) encompasses methods and techniques that make the outputs of AI systems understandable to humans — showing not just what the AI decided, but why. This is critical for regulated industries, high-stakes decisions, and building trust with stakeholders.
When Do Businesses Need Explainable AI?
Any AI system making decisions that affect people — credit approvals, hiring recommendations, medical diagnoses, insurance claims — should be explainable. Regulations like the EU AI Act explicitly require explainability for high-risk AI applications. Even in lower-risk scenarios, explainability helps teams debug AI errors and improve system performance over time.