The AI audit burden: Why ‘Explainable AI’ is the key
By 
Tom Fox2025-11-26T19:21:00
AI decisions are only defensible when the reasoning behind them is visible, traceable, and auditable. “Explainable AI” delivers that visibility, turning black-box outputs into documented logic that compliance officers can stand behind when regulators, auditors, or stakeholders demand answers.
A recent article in FinTechGlobal posed the following question: ”Is transparency the final barrier to true AI compliance?” I thought this question hit on a key issue for every Chief Compliance Officer (CCO) and compliance professional who is turning to AI for their compliance program. It boils down to the issue of trust.
Related articles
-
OpinionThe rise of the AI compliance officer
As AI reshapes business operations and regulators move quickly, companies increasingly need a dedicated AI compliance officer to ensure ethical, transparent, and accountable deployment.
-
OpinionAgentic AI and the policy blind spot: Why security can’t wait
The current AI policy and regulation landscape is still emerging globally. While some regulations and standards exist, governments, industry, and security leaders have critical gaps to close, especially around agentic artificial intelligence.
-
OpinionThe CFO, AI, and the New Compliance Frontier
As CFOs use AI to streamline operations, they face new compliance risks tied to accountability and algorithmic governance. CCOs must work with them to ensure transparency and oversight throughout adoption.
More from Opinion
-
OpinionTurning compliance into a competitive advantage in defense tech
For emerging defense tech companies to take full advantage of acquisition reforms and increased funding, they will need to overcome a defining feature of the U.S. defense industry: It is highly regulated, and will likely remain so.
-
OpinionWho is leading the fight against confidence scams, and who should?
Internet-enabled scams are drawing national attention, with authorities treating them as organized transnational crimes. The FBI says confidence schemes now make up a significant share of online fraud, prompting questions about how the private sector is responding.
-
OpinionWhen stability fails: Why over-optimization creates organizational brittleness
Most organizations would say they value stability. Predictable operations, consistent output, and well-defined processes are generally considered marks of maturity. The assumption is simple: if a system can be made reliable, it becomes resilient.