Why Explainable AI is the key to legal compliance and trust
Explainable AI (XAI) is emerging as a vital component in creating legally compliant and trustworthy AI applications. This technology helps prevent discrimination, makes decision-making processes transparent, and reduces liability risks in sectors such as HR, finance, and medical technology. Investing in XAI now can secure compliance and build trust with customers and partners.
Companies are urged to design AI systems that are transparent, comprehensible, and legally sound to meet regulatory demands and earn user trust. Requirements for AI explainability are appearing in various legal areas, including data protection, product safety, liability law, and corporate governance. The EU AI Act underscores this, emphasizing the legal accountability of AI deployment and mandating traceability and transparency in AI systems.
Recently, prominent companies like SAP, Deutsche Telekom, and Volkswagen have collaborated with AI consulting firm statworx and Prof. Dr. Elena Dubovitskaya. Together, they published a whitepaper highlighting the role of Explainable AI in ensuring legally compliant and trustworthy AI applications.
As AI continues to permeate various industries, the importance of Explainable AI in ensuring legal compliance and building trust cannot be overstated. Companies are advised to invest in XAI to meet regulatory demands, minimize risks, and foster user trust in their AI applications.
