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Title: Beyond the black box: operationalising explicability in artificial intelligence for financial institutions

Authors: Sam Solaimani; Phoebe Long

Addresses: Center for Marketing and Supply Chain Management, Nyenrode Business University, Straatweg 25, 3620 AC Breukelen, The Netherlands ' Center for Marketing and Supply Chain Management, Nyenrode Business University, Straatweg 25, 3620 AC Breukelen, The Netherlands

Abstract: Artificial intelligence (AI) is transforming the finance sector, driving advancements in fraud detection, risk profiling, and trading strategies. Despite its potential, AI requires robust governance to prevent perpetuating unconscious biases, achievable through the principle of explicability. This study examines explicability in ethical AI governance within finance, focusing on its conceptualisation and operationalisation. Drawing on interdisciplinary literature, the study conceptualises an integrative maturity framework around three core dimensions: transparency, interpretability, and accountability. The framework provides actionable guidance for operationalisation through progressive procedures, tools, and interventions. Empirical validation through expert interviews reveals that explicability should be addressed holistically, operationalised incrementally, and implemented consistently. The proposed explicability maturity framework supports firms in ethically and effectively adopting AI, advancing both academic discourse and industry practices.

Keywords: ethics; explicability; operationalisation; artificial intelligence; financial institutions; maturity model.

DOI: 10.1504/IJBIS.2025.146837

International Journal of Business Information Systems, 2025 Vol.49 No.5, pp.1 - 38

Received: 20 Mar 2025
Accepted: 06 Apr 2025
Published online: 20 Jun 2025 *