Journal Press India^®

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Artificial Intelligence (AI) and Machine Learning (ML) are widely employed in increasingly inter-related global financial markets. However, their ‘black box’ nature challenges their use in a heterogeneous body of international regulations and diverse cultural landscapes. This systematic review argues that Explainable AI (XAI) is the most pressing solution. XAI advances transparency and trustworthiness, which is crucial for precipitating global regulatory adherence and building transnational stakeholder confidence. The review discusses how XAI applications in areas like foreign exchange forecasting, international portfolio management, and geopolitical risk assessment directly inform international investment strategies and cross-border financial stability. XAI provides a vital door for multinational corporations and financial institutions to gain transparency and insight into changing market forces on a global level. We present a state-of-the-art review and elucidate upcoming challenges for the global application of XAI, encouraging research to further incorporate XAI in practices for international business.

Keywords

Explainable AI (XAI); Global financial markets; Cross-border decision-making; Regulatory compliance; International investment strategy

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