2023/06/05 by Barry Quinn, Quinn, Barry · 1 citation
Computer Science · Decision Sciences · Economics, Econometrics and Finance · #Credit Risk and Financial Regulations #Explainable Artificial Intelligence (XAI) #FOS: Economics and business #General Finance (q-fin.GN) #Statistical Finance (q-fin.ST) #Stock Market Forecasting Methods
paper · pdf · doi:10.48550/arxiv.2306.02773
openalex publication_date 2023/06/05 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/28
This paper explores the journey of AI in finance, with a particular focus on the crucial role and potential of Explainable AI (XAI). We trace AI's evolution from early statistical methods to sophisticated machine learning, highlighting XAI's role in popular financial applications. The paper underscores the superior interpretability of methods like Shapley values compared to traditional linear regression in complex financial scenarios. It emphasizes the necessity of further XAI research, given forthcoming EU regulations. The paper demonstrates, through simulations, that XAI enhances trust in AI systems, fostering more responsible decision-making within finance.