Understanding how Artificial Intelligence reasons and the importance of Explainable Artificial Intelligence (XAI) and interpretability in building trust, accountability, fairness, and transparency. Techniques of XAI include model-agnostic techniques, model-specific approaches, and counterfactual explanations. XAI is being applied in healthcare, finance, law enforcement, and other domains. The future of XAI includes explaining complex patterns and trends, fostering human-AI collaboration, and evolving ethics.