International Journal For Multidisciplinary Research

E-ISSN: 2582-2160     Impact Factor: 9.24

A Widely Indexed Open Access Peer Reviewed Multidisciplinary Bi-monthly Scholarly International Journal

Call for Paper Volume 8, Issue 4 (July-August 2026) Submit your research before last 3 days of August to publish your research paper in the issue of July-August.

Explainable AI for Business Decision-Making: Enhancing Transparency, Trust, and Strategic Performance

Author(s) Shiivaan Chaturvedi
Country India
Abstract Artificial Intelligence (AI) has become a critical component of modern business operations, supporting decision-making processes across finance, marketing, supply chain management, human resources, and customer relationship management. While advanced AI models often deliver high predictive accuracy, their complex internal structures frequently limit interpretability, creating concerns regarding transparency, accountability, and trust. Explainable Artificial Intelligence (XAI) has emerged as a solution to address these challenges by enabling stakeholders to understand, interpret, and validate AI-generated recommendations. This paper examines the role of Explainable AI in business decision-making and proposes a framework that integrates explainability mechanisms into organizational analytics systems. The study explores various XAI techniques, including feature importance analysis, local explanations, rule-based models, and visualization approaches. Through a simulated business case, the research demonstrates how explainable AI improves managerial confidence, supports regulatory compliance, reduces decision-making risks, and enhances organizational adoption of AI technologies. The findings suggest that organizations implementing explainable AI achieve more transparent and reliable decision-making processes while maintaining predictive performance. This study contributes to the growing field of responsible AI by highlighting the strategic value of explainability in business environments.
Keywords Explainable AI, Business Intelligence, Decision Support Systems, Artificial Intelligence, Transparency, Trustworthy AI, Predictive Analytics
Published In Volume 8, Issue 4, July-August 2026
Published On 2026-07-31

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