Explainable AI (XAI) refers to methods and tools that make the decisions and processes of artificial intelligence systems transparent and understandable to humans. Unlike traditional 'black box' AI, XAI provides clear explanations for how and why decisions are made, helping users trust and effectively use AI outputs. This is especially important in fields like healthcare, finance, and law, where understanding AI reasoning is critical for compliance, accountability, and ethical considerations. XAI enhances transparency, supports better decision-making, and helps identify and correct biases in AI systems.