Accessibility Menu

What Is the Black Box Model?

By Kristi WaterworthUpdated Nov 3, 2025 at 11:13 PM | Fact-checked by Frank Bass

Key Points

  • AI black box models lack transparency, making investment decisions unclear.
  • White box models are slower but clarify their decision-making processes.
  • Investors should verify AI outputs to align with long-term financial goals.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.