Efficient and Interpretable Transformer for Counterfactual Fairness

Abstract

The growing reliance of machine learning models in high-stakes, highly regulated domains such as finance and insurance has created a growing tension between predictive performance, interpretability, and regulatory fairness requirements. In these settings, models are expected not only to deliver reliable predictions but also to provide transparent decision rationales and comply with strict fairness requirements. Attention-based transformers offer powerful mechanisms for modeling complex data relationships as demonstrated in various language tasks, yet their attention mechanisms alone do not ensure counterfactually fair predictions, even when combined with fairness-aware techniques. To address these limitations, we propose the Feature Correlation Transformer (FCorrTransformer), an attention-light architecture tailored for tabular data. In this design, the attention matrix admits a direct statistical interpretation as pairwise feature dependencies, enhancing both interpretability and efficiency. Leveraging this structure, we introduce Counterfactual Attention Regularization (CAR), a framework that enforces group-invariant fair representations of sensitive features at the attention level, promoting counterfactually fair predictions without relying on explicit causal assumptions. Empirical evaluations on imbalanced classification and regression benchmarks demonstrate that FCorrTransformer combined with CAR achieves strong counterfactual fairness while maintaining competitive predictive performance and substantially reducing model complexity compared with standard transformer-based baselines. Overall, this work bridges a critical gap between fairness theory and machine learning models, offering a practical framework for responsible AI in regulatory-sensitive domains.