MUMBAI, India, Dec. 13 -- Intellectual Property India has published a patent application (202511102854 A) filed by Dr. Alok Negi; Dr. Prachi Chauhan; Mrs Shalini; and Dr. Renu Chaudhary, Dehradun, Uttarakhand, on Oct. 25, for 'explainable ai framework for regulatory compliance and auditability in financial systems.'

Inventor(s) include Dr. Alok Negi; Dr. Prachi Chauhan; Mrs Shalini; and Dr. Renu Chaudhary.

The application for the patent was published on Dec. 12, under issue no. 50/2025.

According to the abstract released by the Intellectual Property India: "Privacy-Preserving Data Synthesis Engine for Generative AI Models, The present invention discloses an Explainable Artificial Intelligence (XAI) framework specifically designed to ensure regulatory compliance and auditability in financial systems. As AI becomes increasingly embedded in critical financial decision-making processes-such as credit scoring, fraud detection, risk assessment, and compliance monitoring-there is a growing need for transparency, fairness, accountability, and interpretability of these systems. Traditional AI models, often operating as "black boxes," cannot provide comprehensible justifications for their outputs, posing serious challenges to regulatory adherence and public trust. This invention addresses these concerns through a modular and comprehensive architecture that integrates explainability and compliance features throughout the AI lifecycle. The system includes modules for data ingestion with privacy-preserving pre-processing, regulatory constraint mapping, bias and fairness monitoring, compliance-aware model training, real-time decision explainability, immutable audit logging, stakeholder feedback integration, and governance dashboards. These components work in unison to ensure that AI models deployed in financial domains are not only accurate but also legally transparent, auditable, and ethically aligned. The invention supports both model-specific and model-agnostic explanation techniques, ensures ongoing fairness assessment across demographic subgroups, and logs all AI decisions and justifications in an immutable trail. This framework enables financial institutions to meet international compliance standards, respond to regulatory inquiries, and maintain public trust while leveraging the full potential of AI technologies."

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