Counterfactual Explanation

An explanation that describes the minimal change to input features that would alter a model's prediction, helping users understand what would need to be different for a different outcome.

An explanation that says: "The AI would have approved your loan if your income were $5,000 higher." It tells you the smallest change needed to get a different result.

Counterfactual explanations directly support contestability and right-to-explanation requirements. They give affected individuals actionable information about what would need to change for a different outcome, which is a governance and compliance asset.