Introduction to Explainable AI (XAI) and Blockchain
Narasimha Rao Vajjhala, Mathias Mbu Fonkam, Philip Eappen · 2025
The convergence of explainable artificial intelligence (XAI) and blockchain technology represents a significant leap forward in addressing the complexities of modern supply chains. As industries adopt AI to optimize processes, the opacity of traditional AI systems, often referred to as “black-box models,” poses challenges in trust and accountability. XAI addresses these issues by providing interpretable insights into AI-driven decisions, transparency, reliability, and stakeholder confidence. Meanwhile, blockchain technology ensures data integrity, traceability, and security through its decentralized and immutable ledger system. Together, XAI and blockchain create a robust framework for tackling supply chain inefficiencies, combating fraud, and meeting ethical and regulatory standards. This chapter explores the foundational principles of these technologies, their complementary roles in enhancing supply chain operations, and their transformative potential in fostering collaboration, improving decision-making, and achieving operational excellence. Practical applications, such as real-time provenance tracking, predictive maintenance, and sustainability efforts, demonstrate the real-world benefits of this integration. By addressing challenges such as scalability and interoperability, this chapter provides a roadmap for leveraging XAI and blockchain to build agile, transparent, and resilient supply chains.