3,302 research outputs found
Local Rule-Based Explanations of Black Box Decision Systems
The recent years have witnessed the rise of accurate but obscure decision
systems which hide the logic of their internal decision processes to the users.
The lack of explanations for the decisions of black box systems is a key
ethical issue, and a limitation to the adoption of machine learning components
in socially sensitive and safety-critical contexts. %Therefore, we need
explanations that reveals the reasons why a predictor takes a certain decision.
In this paper we focus on the problem of black box outcome explanation, i.e.,
explaining the reasons of the decision taken on a specific instance. We propose
LORE, an agnostic method able to provide interpretable and faithful
explanations. LORE first leans a local interpretable predictor on a synthetic
neighborhood generated by a genetic algorithm. Then it derives from the logic
of the local interpretable predictor a meaningful explanation consisting of: a
decision rule, which explains the reasons of the decision; and a set of
counterfactual rules, suggesting the changes in the instance's features that
lead to a different outcome. Wide experiments show that LORE outperforms
existing methods and baselines both in the quality of explanations and in the
accuracy in mimicking the black box
Explainable AI for Interpretable Credit Scoring
With the ever-growing achievements in Artificial Intelligence (AI) and the
recent boosted enthusiasm in Financial Technology (FinTech), applications such
as credit scoring have gained substantial academic interest. Credit scoring
helps financial experts make better decisions regarding whether or not to
accept a loan application, such that loans with a high probability of default
are not accepted. Apart from the noisy and highly imbalanced data challenges
faced by such credit scoring models, recent regulations such as the `right to
explanation' introduced by the General Data Protection Regulation (GDPR) and
the Equal Credit Opportunity Act (ECOA) have added the need for model
interpretability to ensure that algorithmic decisions are understandable and
coherent. An interesting concept that has been recently introduced is
eXplainable AI (XAI), which focuses on making black-box models more
interpretable. In this work, we present a credit scoring model that is both
accurate and interpretable. For classification, state-of-the-art performance on
the Home Equity Line of Credit (HELOC) and Lending Club (LC) Datasets is
achieved using the Extreme Gradient Boosting (XGBoost) model. The model is then
further enhanced with a 360-degree explanation framework, which provides
different explanations (i.e. global, local feature-based and local
instance-based) that are required by different people in different situations.
Evaluation through the use of functionallygrounded, application-grounded and
human-grounded analysis show that the explanations provided are simple,
consistent as well as satisfy the six predetermined hypotheses testing for
correctness, effectiveness, easy understanding, detail sufficiency and
trustworthiness.Comment: 19 pages, David C. Wyld et al. (Eds): ACITY, DPPR, VLSI, WeST, DSA,
CNDC, IoTE, AIAA, NLPTA - 202
MODEL INTERPRETATION AND EXPLAINABILITY Towards Creating Transparency in Prediction Models
Explainable AI (XAI) has a counterpart in analytical modeling which we refer to as model explainability. We tackle the issue of model explainability in the context of prediction models. We analyze a dataset of loans from a credit card company and apply three stages: execute and compare four different prediction methods, apply the best known explainability techniques in the current literature to the model training sets to identify feature importance (FI) (static case), and finally to cross-check whether the FI set holds up under âwhat ifâ prediction scenarios for continuous and categorical variables (dynamic case). We found inconsistency in FI identification between the static and dynamic cases. We summarize the âstate of the artâ in model explainability and suggest further research to advance the field
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