Waterloo research paves the way for use of complex AI in the financial sector Waterloo News

New software developed at the University of Waterloo could make it easier to adopt and trust powerful artificial intelligence (AI) systems that generate stock market predictions, assess who qualifies for mortgages and set insurance premiums. The software is designed to analyze and explain decisions made by deep-learning AI algorithms, providing key insights needed to satisfy regulatory authorities and give analysts confidence in their recommendations. "The potential impact, especially in regulatory settings, is massive," said Devinder Kumar, lead researcher and a PhD candidate in systems design engineering at Waterloo. "If you can't provide reasons for their decisions, you can't use those state-of-the-art systems right now." Deep-learning AI algorithms essentially teach themselves by processing and detecting patterns in vast quantities of data. As a result, even their creators don't know why they come to their conclusions.