Binary Split Logic
Feature Importance
Tree Logic
LLMs are "Black Boxes," but Decision Trees are "Glass Boxes." You can trace every decision back to a specific rule, which is critical for compliance in lending and insurance.
How it works
By splitting data on features like "Income" or "Credit Score", we create narrow "pure" buckets. The model learns which questions lead to the most certain answer.
Model Interpretability
Unlike neural networks, Decision Trees are "Glass Box" models. You can trace every single prediction back to a human-readable logic path.
Transparent Rules
Decision trees are unique because you can always explain *why* a model made a choice. They are essentially high-speed flowcharts that automatically find the best questions to ask.
Founder Strategy
For Compliance-Heavy industries (FinTech, InsurTech), start with Decision Trees (XGBoost). Don't use an LLM for simple business logic—a Decision Tree is $1000\times$ cheaper and $10\times$ faster.