The auditor’s dilemma: Solving the explainability problem in public sector AI

In public governance and highly regulated enterprise landscapes, automated decisions demand verifiable accountability. As AI systems transition from internal productivity tools to customer-facing or citizen-impacting utility systems, public sector CIOs and corporate compliance officers face extreme legal and reputational exposure. Black-box models that process data mysteriously and generate unverified outputs are no longer acceptable under frameworks like the EU AI Act.