Glossary

Algorithmic transparency

What is Algorithmic transparency?

Algorithmic transparency means it is possible to understand how an automated system reaches a result: which data it uses, which rules it follows and where its limits lie. This builds trust, makes errors easier to trace and is increasingly a legal requirement, for example through information duties under the GDPR and the EU AI Act. In practice, documentation, source citations, logs and clear notices for affected people help.

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Topics

Transparency
AI ethics
Regulation

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Related terms

AI Transparency

AI transparency means disclosing when AI is involved, which data and sources its results are based on, and how decisions are reached. This includes labelling AI content, traceable source references, logs and documented changes. Transparency builds trust, makes troubleshooting easier and is partly required by law, for example by the EU AI Act's transparency obligations, under which people should be able to tell that they are interacting with an AI.

Transparency
Trust
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Explainability

Explainability (explainable AI, XAI) describes how well one can understand why an AI system reached a particular result. It covers methods that show which inputs influenced a decision most, as well as practical aids such as source references and logs. Explainability matters for trust, troubleshooting and regulation – for example when a bank has to justify why an application was declined.

XAI
Transparency
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Model interpretability

Model interpretability describes how well people can understand how an AI model arrives at its results. Simple models such as decision trees are inherently easy to read; for complex neural networks, techniques that reveal the influence of individual features can help. Interpretability matters for debugging, trust and regulatory requirements, for example when a loan rejection has to be justified.

explainability
transparency
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AI Regulatory Framework

An AI regulatory framework comprises the laws, standards and oversight structures governing how AI is developed and used. In the EU, the central law is the AI Act (Regulation (EU) 2024/1689), which takes a risk-based approach: prohibitions have applied since February 2025, obligations for general-purpose AI models since August 2025 and transparency duties since August 2026. Following the “Digital Omnibus” (Regulation (EU) 2026/1744), high-risk obligations apply from 2 December 2027 or 2 August 2028 (as of October 2026; not legal advice).

Regulation
EU AI Act
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