Explainable artificial intelligence (XAI) in finance: a systematic literature review

Abstract As the range of decisions made by Artificial Intelligence (AI) expands, the need for Explainable AI (XAI) becomes increasingly critical. The reasoning behind the specific outcomes of complex and opaque financial models requires a thorough justification to improve risk assessment, minimise the loss of trust, and promote a more resilient and trustworthy financial ecosystem. This Systematic Literature Review (SLR) identifies 138 relevant articles from 2005 to 2022 and highlights empirical examples demonstrating XAI's potential benefits in the financial industry. We classified the articles according to the financial tasks addressed by AI using XAI, the variation in XAI methods between applications and…