The Black Box Problem
GLACIS (December 2025): 85% of consumers want explanations when AI affects them, but 60% of production models remain black boxes. GDPR Article 22, EU AI Act (August 2026), Colorado AI Act (June 2026) converge on mandatory explainability. XAI field split into four tracks: post-hoc explanation (LIME, SHAP — relevant but insufficient for frontier LLMs); mechanistic interpretability (reverse-engineering internal computations — most important transparency development for frontier models); intrinsic concept-based modeling; human-centered explanation. LLM failure modes: factual hallucination, format dependency, training bias, causal reasoning failure. UST (April 2026): explainability evolving from isolated model feature to end-to-end enterprise capability combining measurement, intervention, provenance, and governance.

