AIDive
Back to glossary

What is Algorithmic Transparency

GlossaryEthics & Safety

The ability to explain how an algorithm works, what data it uses, and why it makes certain decisions.

Definition

Algorithmic transparency is needed so that users, developers, regulators and product owners can trust automated decisions. It does not always mean revealing all the code. Sometimes a clear description of the logic, limitations, data, quality metrics and appeal methods is enough.

Example

The recommendation platform explains that a product is shown based on past views, similar purchases, and the selected category.

Why it matters

The term is important for AI systems that influence people: without transparency, errors, biases and abuses are difficult to detect.

How it works

Transparency is created through documentation, explainable models, reports, interface tips, logs, auditing and clear rules for the system.

Where it is used

  • explanation of solutions
  • user trust
  • audit and regulation

Limitations

Disclosing too much may compromise security or trade secrets. We need to find a balance between clarity and security of the system.