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21 August 2025

Interpretability (Glossary)

Artificial intelligence Automation Big data and smart data Digital transformation Sanjay Sauldie Glossary

The term interpretability is particularly at home in the fields of artificial intelligence, big data, smart data and digital transformation. It describes the traceability and comprehensibility of complex digital systems and algorithms - in other words, how well we as humans can understand their decisions and functions.

In practice, interpretability means that we can recognise why software or an AI has made a certain decision. For example, a bank uses artificial intelligence to make lending decisions. If this software refuses a customer a loan, it is important for the bank, but also for the customer, to be able to understand how the result came about. If the system can be interpreted, it becomes clear, for example, that income or previous payment behaviour were the reasons.

Good interpretability helps to strengthen trust in digital systems, find errors and ensure fair decisions. Traceable decisions play a central role, especially in sensitive business processes, so that we humans can really trust the results of algorithms.

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Sanjay Sauldie

Sanjay Sauldie is a digital strategist, speaker and developer of the transruption toolkit, which companies can use to make their digital transformation measurable, human and sustainable. With kiROI - the AI-based approach to value creation in the digital age - he helps self-employed people and companies to integrate artificial intelligence into their processes in a practical way. With his outstanding marketing strategy iROI, he has already led countless companies to greater visibility and thus more profits. He combines digital innovation with disruptive thinking models for a sustainable business strategy. He studied mathematics and computer science at the University of Cologne, completed a Master of Science in Digital Disruption at the University of Salford (UK) and a Design Thinking programme at MIT/EMERITUS Singapore. As a multiple award-winning expert - including the Golden Web Award and the Innovation Award of the Initiative Mittelstand - he advises SMEs and corporations. His motto: "Digitalisation is not an end in itself - it must serve people."

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