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What is Explainable AI (xAI) in Finance and FP&A?
Imagine you are the captain of a ship navigating through the large and unpredictable waters of the financial market.
Your ship is equipped with an advanced autopilot system (AI) that can chart the best course based on various data points like weather patterns, ocean currents, and previous voyages.
However, if this autopilot system operates like a “black box” — making decisions without explaining its reasoning — you, as the captain, might find it difficult to trust its directions, especially in rough seas.
In FP&A, using explainable AI is like having a transparent autopilot system for your financial journey.
It ensures that everyone on board understands the course, trusts the technology guiding them, and can make informed decisions together.
This not only improves navigation through calm and stormy waters alike but also ensures that the entire crew is confident and coordinated in their efforts to reach their destination successfully.
Without Explainable AI:
- Blind Trust: The autopilot steers the ship, but you have no idea why…
