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Work Package 3
Towards Explainable and Fair AI-Generated Decisions

Leading institution
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Overview

AI-driven innovation can bring enormous benefits but such complex solutions are often referred to as “black boxes” because typically it is difficult to trace the steps the algorithms took to arrive at its conclusions. DIGITAL will describe how well XAI tools meet the explainability requirements of various financial value chain stakeholders, develop non-perturbation-based XAI methods that preserve the natural time ordering and dependence structures of the data and create methodologies to ensure that algorithmic systems do not produce socially biassed outcomes that exacerbate inequalities.

This research topic will address the crucial question of how to build trust in human-centric AI models as opposed to the currently widespread AI black boxes, which do not meet the modern European requirements of explainability, trust and unbiasedness. We will validate the applicability of state-of-the-art XAI algorithms to financial applications and extend XAI frameworks, ensuring that complex models applied to financial use cases satisfy the explainability requirements of different stakeholders within the finance value chain and do not reinforce social biases. A qualitative evaluation of the comprehensive frameworks' insights into explainability will be made in comparison to the baseline models. Through industry-ready use cases, we will demonstrate for the first time ever the viability of the proposed framework for audience-dependent explanations, the novel time-series XAI methods, and the fair algorithmic designs.

WP 3 Team

Research topics

Under this research stream, FOUR doctoral candidates will tackle the following research projects:

  • Towards a European Financial Data Space (WP1)
    IRP6 - Collaborative learning across data silos IRP8 - Detecting anomalies and dependence structures in high dimensional, high frequency financial data IRP13 - Predicting financial trends using text mining and NLP IRP15 - Deep Generation of Financial Time Series Work Package 1 Page
  • Artificial Intelligence for Financial Markets (WP2)
    IRP12 - Developing industry-ready automated trading systems to conduct EcoFin analysis using deep learning algorithms IRP14 - Challenges and opportunities for the uptaking of technological development by industry Work Package 2 Page
  • Towards explainable and fair AI-generated decisions (WP3)
    IRP1 - Strengthening European financial service providers through applicable reinforcement learning IRP9 - Audience-dependent explanations IRP16 - Investigating the utility of classical XAI methods in financial time series IRP17 - Fair Algorithmic Design and Portfolio Optimization under Sustainability Concerns Work Package 3 Page
  • Driving digital innovations with Blockchain applications (WP4)
    IRP3 - Machine learning for digital finance IRP5 - Fraud detection in financial networks IRP7 - Risk index for cryptos Work Package 4 Page
  • Sustainability of Digital Finance (WP5)
    IRP2 - Modelling green credit scores for a network of retail and business clients IRP4 - A recommender system to re-orient investments towards more sustainable technologies and businesses IRP10 - Experimenting with Green AI to reduce processing time and contributes to creating a low-carbon economy IRP11 - Applications of Agent-based Models (ABM) to analyse finance growth in a sustainable manner over a long-term period Work Package 5 Page
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