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Contextual utility theory integrates context-sensitive factors intoutility-based decision-making models. It stresses the importance ofunderstanding individual decision-makers' preferences, values, and beliefs andthe situational factors that affect them. Contextual utility theory benefitsexplainable AI. First, it can improve transparency and understanding of how AIsystems affect decision-making. It can reveal AI model biases and limitationsby considering personal preferences and context. Second, contextual utilitytheory can make AI systems more personalized and adaptable to users andstakeholders. AI systems can better meet user needs and values by incorporatingdemographic and cultural data. Finally, contextual utility theory promotesethical AI development and social responsibility. AI developers can createethical systems that benefit society by considering contextual factors likesocietal norms and values. This work, demonstrates how contextual utilitytheory can improve AI system transparency, personalization, and ethics,benefiting both users and developers.

Context, Utility and Influence of an Explanation