# Explainable AI and Adoption of Financial Algorithmic Advisors: an Experimental Study

arXiv: https://arxiv.org/abs/2101.02555 · HTML: https://mlsanity.com/paper/2101.02555/

## Key facts

- Cited by 7 papers in the map (data through 14 Oct 2026).
- Builds on 12 of its 28 references that are in the map.
- First posted on arXiv 5 Jan 2021.

## Builds on (most cited first, 12 of 12)

- [A Unified Approach to Interpreting Model Predictions](https://mlsanity.com/paper/1705.07874/) (2017)
- ["Why Should I Trust You?": Explaining the Predictions of Any Classifier](https://mlsanity.com/paper/1602.04938/) (2016)
- [Interpretability Beyond Feature Attribution: Quantitative Testing with Concept Activation Vectors (TCAV)](https://mlsanity.com/paper/1711.11279/) (2017)
- [Counterfactual Explanations without Opening the Black Box: Automated Decisions and the GDPR](https://mlsanity.com/paper/1711.00399/) (2017)
- [A Survey Of Methods For Explaining Black Box Models](https://mlsanity.com/paper/1802.01933/) (2018)
- [Network Dissection: Quantifying Interpretability of Deep Visual Representations](https://mlsanity.com/paper/1704.05796/) (2017)
- [European Union regulations on algorithmic decision-making and a "right to explanation"](https://mlsanity.com/paper/1606.08813/) (2016)
- [Explanations based on the Missing: Towards Contrastive Explanations with Pertinent Negatives](https://mlsanity.com/paper/1802.07623/) (2018)
- [Metrics for Explainable AI: Challenges and Prospects](https://mlsanity.com/paper/1812.04608/) (2018)
- [Explainable Artificial Intelligence: a Systematic Review](https://mlsanity.com/paper/2006.00093/) (2020)
- [What Does Explainable AI Really Mean? A New Conceptualization of Perspectives](https://mlsanity.com/paper/1710.00794/) (2017)
- [Learning Certifiably Optimal Rule Lists for Categorical Data](https://mlsanity.com/paper/1704.01701/) (2017)

## Built on by (most cited first, 7 of 7)

- [How Human-Centered Explainable AI Interface Are Designed and Evaluated: A Systematic Survey](https://mlsanity.com/paper/2403.14496/) (2024)
- [On the Design and Evaluation of Human-centered Explainable AI Systems: A Systematic Review and Taxonomy](https://mlsanity.com/paper/2510.12201/) (2025)
- [FinLLM-B: When Large Language Models Meet Financial Breakout Trading](https://mlsanity.com/paper/2402.07536/) (2024)
- [Look Before You Leap! Designing a Human-Centered AI System for Change Risk Assessment](https://mlsanity.com/paper/2108.07951/) (2021)
- [How Performance Pressure Influences AI-Assisted Decision Making](https://mlsanity.com/paper/2410.16560/) (2024)
- [Confident Teacher, Confident Student? A Novel User Study Design for Investigating the Didactic Potential of Explanations and their Impact on Uncertainty](https://mlsanity.com/paper/2409.17157/) (2024)
- [Annie, Are You Okay? How Style- and Context-Based Personalization Shape AI-Assisted Decision-Making](https://mlsanity.com/paper/2609.24644/) (2026)

## Abstract (arXiv)

We study whether receiving advice from either a human or algorithmic advisor, accompanied by five types of Local and Global explanation labelings, has an effect on the readiness to adopt, willingness to pay, and trust in a financial AI consultant. We compare the differences over time and in various key situations using a unique experimental framework where participants play a web-based game with real monetary consequences. We observed that accuracy-based explanations of the model in initial phases leads to higher adoption rates. When the performance of the model is immaculate, there is less importance associated with the kind of explanation for adoption. Using more elaborate feature-based or accuracy-based explanations helps substantially in reducing the adoption drop upon model failure. Furthermore, using an autopilot increases adoption significantly. Participants assigned to the AI-labeled advice with explanations were willing to pay more for the advice than the AI-labeled advice with a No-explanation alternative. These results add to the literature on the importance of XAI for algorithmic adoption and trust.