The Management and the Advice of (Un)Explainable AI
Elena Dubovitskaya, Annika Buchholz · European Company and Financial Law Review · 2023
Abstract 794 The article addresses the issue that is widely discussed in Germany and other jurisdictions: can the management of a company use AI applications in its decision-making process without violating its fiduciary duties? The lack of transparency in conventional AI applications conflicts with the fiduciary duty to check the plausibility of external expert advice (in Germany known as the ISION principles). This tension can be partly resolved by using explainable AI (XAI). In this work, we review the basic principles of machine learning and XAI and discuss them in the legal context.