Australian EnterpriseAI Index
GlossaryTechnical

Explainability (XAI)

Explainability (sometimes "XAI") is the capacity of an AI system to provide a human-understandable rationale for its outputs — critical for high-stakes decisions like lending, insurance underwriting, or clinical triage, where regulators or affected individuals may demand a reason. Generative AI models are notably harder to explain than earlier classical ML, which is part of why governance frameworks have tightened alongside generative AI adoption.

Primarily affects

The Governance dimension of the Australian Enterprise AI Index.

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The open methodology explains exactly how each dimension is scored and weighted.

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Related terms

Definitions are written for enterprise AI governance context, not a formal legal standard. Suggest a correction →