AI Transparency
The practice of ensuring AI system operations, decision-making logic, data usage and limitations are understandable and accessible to relevant stakeholders.
In plain language
Being open and honest about how your AI works. If a bank uses AI to assess loan applications, transparency means disclosing that AI was involved and explaining the key factors that influenced the decision.
Why this matters
Transparency is essential to building stakeholder trust and managing regulatory risk. When organisations can clearly explain how their AI systems work, customers and regulators gain confidence. It also enables early identification and correction of problems before they escalate.
Relevance
GovernanceTransparency requirements underpin regulatory compliance, customer trust and reputational management. Governance frameworks should define transparency standards proportionate to AI risk and impact.
Related terms
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