Abstract
The aim of this study is to introduce Explainable Artificial Intelligence (XAI) as a novel perspective on reward-based crowdfunding platforms. With the rapid growth of crowdfunding as a new internet-based financial model for new ventures, the role of transparency in mitigating information asymmetry and enhancing backers’ decisions is becoming increasingly important. While prior studies explored how backers overcome information asymmetry to make their project funding decisions, less attention has been given to how different backers analyze and use information. Furthermore, there is limited research on how XAI’s transparency and the explainability of results affect backers’ decision-making. We conducted a literature review and categorized the factors that mitigate information asymmetry and influence backers’ decisions into the creators’ perspective, backers’ perspective, and platform perspective. Additionally, we highlighted our key research questions and future research directions.
Recommended Citation
Narangoda, Kesan; Trieu, Van-hau; and Xiong, Bingqing, "Will Explainable AI (XAI) Mitigate the Information Asymmetry and Influence Backers’ Funding Decision in Reward-based Crowdfunding Platforms? A Literature Review" (2025). SIGHCI 2024 Proceedings. 21.
https://aisel.aisnet.org/sighci2024/21
