Video-based AI systems are increasingly adopted in safety-critical domains such as autonomous driving and healthcare. However, interpreting their decisions remains challenging due to the inherent spatiotemporal complexity of video data and the opacity of deep learning models. Existing explanation techniques often suffer from limited temporal coherence, insufficient robustness, and a lack of actionable causal insights. Current counterfactual explanation methods typically do not incorporate guidance from the target model, reducing semantic fidelity and practical utility. We introduce Latent Diffusion for Video Counterfactual Explanations (LD-ViCE), a novel framework designed to explain the behavior of video-based AI models. Compared to previous approaches, LD-ViCE reduces the computational costs of generating explanations by operating in latent space using a state-of-the-art diffusion model, while producing realistic and interpretable counterfactuals through an additional refinement step. Our experiments demonstrate the effectiveness of LD-ViCE across three diverse video datasets, including EchoNet-Dynamic (cardiac ultrasound), FERV39k (facial expression), and Something-Something V2 (action recognition). LD-ViCE outperforms a recent state-of-the-art method, achieving an increase in R2 score of up to 68% while reducing inference time by half. Qualitative analysis confirms that LD-ViCE generates semantically meaningful and temporally coherent explanations, offering valuable insights into the target model behavior. LD-ViCE represents a valuable step toward the trustworthy deployment of AI in safety-critical domains.
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