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This paper examines the issues surrounding the ?explainability? of artificial intelligence in financial services. It reviews key parts of the regulatory environment and potential next steps in AI regulation.
The paper considers potential approaches to navigating the evolving regulatory expectations in practice, looking at recent guidance and potential governance measures firms could apply in response. The paper also summarises some of the technical challenges that firms face in designing and implementing explainable AI, along with methods that can be used to address these.
The paper includes general discussion and also hypothetical case studies to give a more practical perspective
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