The increasing use of artificial intelligence in banking is facing scrutiny due to the opaqueness of some AI systems. These “black box” models, while powerful, lack transparency in their decision-making processes, posing challenges for governance and regulatory compliance. Banks are struggling to meet standards when they cannot explain *how* an AI arrived at a specific financial decision. This lack of explainability raises concerns about fairness, bias, and accountability within the financial system. Regulators are pushing for greater transparency to ensure responsible AI implementation. The inability to understand the reasoning behind AI decisions hinders effective oversight and risk management in the banking sector. Ultimately, addressing this “black box” issue is critical for building trust and ensuring the safe and ethical use of AI in finance.