Transparency in Decision-Making: The Role of Explainable AI (XAI) in Customer Churn Analysis

In many industries, such as the telecommunications industry, identifying the causes of customer churn is a primary challenge. In the telecommunications industry, it is of great importance to predict which customers will abandon or continue their subscriptions. Machine learning and data science offer numerous solutions to this problem. These proposed solutions have an important place in decision making processes in various sectors. This study aims to predict lost customers using machine learning algorithms and explain the reasons behind them. The dataset used used Linear Regression, Logistic Regression, Naive Bayes, Decision Tree, Random Forest, K-Nearest Neighbors (KNN), Gradient Boosting, XGBoost (eXtreme Gradient Boosting), LightGBM, AdaBoost and CatBoost to find the classification with the best performance. Contains algorithms. model. Performance metrics such as R2 score, Mean Square Error, Mean Absolute Error, Root Mean Square Error and Accuracy are used in this process. Finally, the LightGBMmodel, which gives the highest accuracy value (73.085%), is explained using explainable artificial intelligence (XAI) algorithms.

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Publication Details

Journal
Information technology in economics and business.
Published
2025-01-29
DOI
https://doi.org/10.69882/adba.iteb.2025011
Citations
3
Primary Topic
Impact of AI and Big Data on Business and Society
Type
article
Field-Weighted Citation Impact
6.32
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article

Transparency in Decision-Making: The Role of Explainable AI (XAI) in Customer Churn Analysis

Cem Özkurt
3 citations
Information technology in economics and business.
Impact of AI and Big Data on Business and Society
6.32
article

Transparency in Decision-Making: The Role of Explainable AI (XAI) in Customer Churn Analysis

Cem Özkurt
article en
3 citations

Abstract

In many industries, such as the telecommunications industry, identifying the causes of customer churn is a primary challenge. In the telecommunications industry, it is of great importance to predict which customers will abandon or continue their subscriptions. Machine learning and data science offer numerous solutions to this problem. These proposed solutions have an important place in decision making processes in various sectors. This study aims to predict lost customers using machine learning algorithms and explain the reasons behind them. The dataset used used Linear Regression, Logistic Regression, Naive Bayes, Decision Tree, Random Forest, K-Nearest Neighbors (KNN), Gradient Boosting, XGBoost (eXtreme Gradient Boosting), LightGBM, AdaBoost and CatBoost to find the classification with the best performance. Contains algorithms. model. Performance metrics such as R2 score, Mean Square Error, Mean Absolute Error, Root Mean Square Error and Accuracy are used in this process. Finally, the LightGBMmodel, which gives the highest accuracy value (73.085%), is explained using explainable artificial intelligence (XAI) algorithms.

Information technology in economics and business.Vol. 2(1)
Sakarya University (TR), Sakarya Uygulamalı Bilimler Üniversitesi
Openalex Percentile: Top 5%
Impact of AI and Big Data on Business and Society
6.32
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