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Indic Pacific Glossary

AI Explainability Clause

Date of Addition

5 Mar 2025

A binding requirement that mandates AI system providers and deployers to ensure that significant decisions made or supported by AI systems can be explained in terms comprehensible to affected parties. This includes disclosure of the system's purpose, capabilities, limitations, data sources, decision criteria, potential biases, and the specific roles of human and automated components in the decision-making process. The explainability standard scales with the potential impact of decisions, requiring greater transparency for systems affecting fundamental rights, safety, or significant economic interests.

Click here to find a Sample Explainability clause

The AI system provider/deployer ("Provider") shall ensure that all significant decisions made or substantially influenced by the AI system ("System") are explainable to affected parties in clear, non-technical language. This explanation shall include, at minimum:


  • The specific purpose and intended use of the System;

  • The types and sources of data used by the System;

  • The key factors or criteria considered in reaching the decision;

  • Any known limitations or potential biases in the System;

  • The respective roles of human oversight and automated processes in the final decision;

  • The potential impact of the decision on the affected party;

  • Available options for contesting or seeking review of the decision.


The level of detail provided in the explanation shall be proportionate to the potential impact of the decision on fundamental rights, safety, or significant economic interests of the affected party. The Provider shall maintain documentation of the System's decision-making processes sufficient to generate these explanations upon request.


This clause shall be binding and enforceable, with non-compliance potentially resulting in suspension of the System's use until adequate explainability is demonstrated.


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