Explainable AI Unleashes the Power of Machine Learning in Banking

Explainability has taken on more urgency at many banks as a result of increasingly complex AI algorithms, many of which have become critical to the deployment of advanced AI applications in banking, such as facial or voice recognition, securities trading, and cybersecurity. The complexity is due to greater computing power, the explosion of big data, and advances in modeling techniques such as neural networks and deep learning. Several banks are establishing special task forces to spearhead explainability initiatives in coordination with their AI teams and business units. They are also stepping up their oversight of vendor solutions as the use of automated machine learning capabilities continues to grow considerably. Explainability is also becoming a more pressing concern for banking regulators who want to be assured that AI processes and outcomes can be reasonably understood by bank employees.