As AI systems become deeply ingrained in societal infrastructures, the need to comprehend their decision-making processes and address potential biases becomes increasingly urgent. This chapter takes a critical approach to the issues of interpretability and dataset bias in contemporary AI systems. The authors thoroughly dissect the implications of these issues and their potential impact on end-users. The chapter presents mitigative strategies, informed by extensive research, to build AI systems that are not only fairer but also more transparent, ensuring equitable service for diverse populations. Interpretability and dataset bias are critical aspects of AI systems, particularly in high-stakes applications like healthcare, criminal justice, and finance. In the study, the authors delve deep into the challenges associated with interpreting the decisions made by complex AI models. © 2024 Elsevier B.V., All rights reserved.