Explainable AI (XAI) in Decision Analytics: Enhancing Trust and Transparency in Business Intelligence

Abstract

This article uncovers why Explainable AI (XAI) is now essential due to the increased role of artificial intelligence in important business operations. With companies focusing on being open and understandable, XAI is becoming the main way to explain unclear AI-related processes. This article shows how XAI, by looking into its theoretical background, various practical applications, different technical approaches, and hurdles, has the power to turn confusing algorithms into understandable devices that support human judgment. XAI enables decision-makers to comprehend sophisticated machine recommendations, build organizational confidence, support regulatory obligations, and foster productive collaboration between human expertise and computational intelligence in consequential business environments, ultimately facilitating responsible deployment of AI capabilities within modern business intelligence frameworks.