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Ms. Anju Chavan is an Assistant Professor in the Department of Economics at N. L. Dalmia College of Arts, Commerce and Science, Maharashtra, India. Her research interests include economics, public policy, governance, and sustainable development.
Governments are progressively adopting Artificial Intelligence (AI) to enhance public administration, policy development, service provision, and evidence-based decision-making. The increasing dependence on intricate AI models has elicited apprehensions about transparency, accountability, equity, and public confidence. Explainable Artificial Intelligence (XAI) tackles these difficulties by offering interpretable and comprehensible explanations for AI-generated judgements, allowing policymakers, public administration, and citizens to grasp the decision-making process. XAI advocates for responsible governance through the augmentation of transparency, mitigation of algorithmic bias, facilitation of regulatory compliance, and cultivation of public trust in AI-driven systems. This chapter examines the ideas, methodology, technologies, applications, problems, and future trajectories of Explainable AI in transparent governance and public policy formulation. It underscores the significance of XAI in facilitating accountable decision-making, ethical governance, and citizen-focused public administration.