What Is Explainable AI and Why It Matters

AI GovernanceLast updated on
What Is Explainable AI and Why It Matters

Do you know how changing a single data point affects the predictions of models that power your business? AI models can be complex, and not all models are built the same. Knowing how an input affects the model's output makes it easier to optimize that model for your organization's needs.

Defining Explainable AI

Explainable AI (XAI) is a method of designing AI with the goal of creating human-understandable models. An explainable model makes clear the effect of each individual input on the model's output. Some simpler models, like logistic regression, are explainable by nature. More complex models, like deep learning systems, require specific explainability techniques.

XAI connects directly to responsible AI, which emphasizes designing models to be fair, privacy-sensitive, secure, and explainable. The benefits overlap: explainable models can be understood by stakeholders, and using XAI contributes to detecting and limiting model bias.

Who Benefits from Explainability

Different stakeholders need explanations for different reasons.

Internal teams benefit from improved model performance through understanding the reasoning behind predictions. When MLOps teams can see why a model made a specific decision, they can identify problems faster and improve the model more effectively.

Public stakeholders become more informed about the models they regulate or invest in. Regulators need evidence that decisions are justified. Auditors need documentation demonstrating compliance.

End users can better understand how individually-relevant predictions were reached. A loan applicant denied credit deserves to understand what factors mattered and what might change the outcome.

How XAI Works Across Data Types

Explainability techniques differ based on the type of data a model processes.

Structured Data

When working with tabular data, XAI helps identify the highest contributing features in the model. These are the inputs that most strongly impact the output. This information helps identify model bias and helps teams find features that can be removed without impacting predictions. It also helps determine what features lead to unexpected or poor model behavior.

Text Data

With text or speech data, models often conduct sentiment analysis through natural language processing. Sentiment analysis assigns a positive or negative tonal score based on how positive or negative a model perceives individual words. XAI helps identify the words that most impact the sentiment score. It ensures the model works as expected and allows adaptation for changing uses of language.

Image and Video Data

Image models typically use neural networks for image classification or object detection. Video models work similarly, treating each frame as its own image. Convolutional neural networks label pixels with relative importance via heatmaps. For visual data, XAI helps identify the highest-weighted pixels so teams can fine-tune weights to capture the most important features.

XAI Throughout the Model Lifecycle

Model monitoring benefits from clarity on how models derive predictions. Explainability matters throughout the model lifecycle.

Offline explanations optimize models for production while still in development. Teams can verify that models behave as expected before deployment.

Online explanations serve two purposes after deployment. Spot explanations help debug model issues when they arise. Consistent explanations help track model performance over time.

By tracking the impact of inputs on outputs, XAI helps with a key use case: preventing data drift and decreased performance. Being able to understand the model also means easier debugging and adjustment for new data.

The Prevention Principle

One of the main problems with AI today is that issues are detected after the fact, usually when people have already been impacted. This needs to change. Explainability needs to be a fundamental part of any AI solution, from design through production.

We cannot wait for bias or errors to surface through customer complaints or audit findings. In order to prevent problems, we need visibility into the inner workings of AI algorithms throughout the lifecycle. We need humans in the loop monitoring explainability results and overriding decisions where necessary.

Building Trust Through Transparency

Ultimately, XAI makes models more transparent. This transparency contributes to easier monitoring, debugging, optimization, and performance tracking.

The organizations that succeed with AI will be those that treat explainability not as an afterthought but as a core requirement. When stakeholders can understand why a model made a decision, they can trust the system. When they cannot understand, trust erodes.

Transparency is not just a technical capability. It is the foundation for responsible AI deployment.

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