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Explainable Artificial Intelligence (XAI) in Management and Entrepreneurship: exploring the applications and implications
Subject area: Management and Commerce · Area of research: Artificial Intelligence and entrepreneurship
Abstract
Explainable AI (XAI) is a crucial aspect of AI model development. Success in XAI will skyrocket the use of AI in management and entrepreneurship, especially in crucial decision-making and resource allocations. This study evaluates how XAI enhances trust in decision-making, assesses the key applications of XAI in management and entrepreneurship, and considers the challenges and ethical considerations that arise in the adoption of XAI in management and entrepreneurship. Existing literature was explored and concrete conclusions were drawn from that literature. Findings show that AI solutions have proven to be effective in business operations etc., however, AI solutions present a huge challenge. High-accurate AI solutions are not explainable. This study shows that managers and entrepreneurs are likelier to trust AI solutions if they are interpretable. Besides, the literature reveals that guided XAI improves confidence in decision-making, particularly in strategic planning and resource allocations. XAI is found to reduce cognitive bias, promote transparency and accountability, and also address ethical concerns.
Keywords
Explainable AI, entrepreneurship, management, SHAP, LIME, Post hoc AI, black box, white box, interpretability, explainability, transparency
How to cite this paper
@article{1708573,
author = {Adebayo Rotimi Philip},
title = {Explainable Artificial Intelligence (XAI) in Management and Entrepreneurship: exploring the applications and implications},
journal = {Iconic Research And Engineering Journals},
year = {2025},
volume = {8},
number = {11},
pages = {2336-2349},
issn = {2456-8880},
url = {https://www.irejournals.com/formatedpaper/1708573.pdf},
abstract = {Explainable AI (XAI) is a crucial aspect of AI model development. Success in XAI will skyrocket the use of AI in management and entrepreneurship, especially in crucial decision-making and resource allocations. This study evaluates how XAI enhances trust in decision-making, assesses the key applications of XAI in management and entrepreneurship, and considers the challenges and ethical considerations that arise in the adoption of XAI in management and entrepreneurship. Existing literature was explored and concrete conclusions were drawn from that literature. Findings show that AI solutions have proven to be effective in business operations etc., however, AI solutions present a huge challenge. High-accurate AI solutions are not explainable. This study shows that managers and entrepreneurs are likelier to trust AI solutions if they are interpretable. Besides, the literature reveals that guided XAI improves confidence in decision-making, particularly in strategic planning and resource allocations. XAI is found to reduce cognitive bias, promote transparency and accountability, and also address ethical concerns.},
keywords = {Explainable AI, entrepreneurship, management, SHAP, LIME, Post hoc AI, black box, white box, interpretability, explainability, transparency},
month = {May},
}