Algorithmic transparency is particularly important in the areas of artificial intelligence, big data, smart data and digital society. This means that it is clear and understandable how an algorithm - i.e. a digital decision-making guide - works.
Many companies use algorithms, for example for automatic credit approval, for product recommendations in online shops or to filter job applications. However, it often remains unclear which rules are used to make these decisions. Algorithmic transparency ensures that it is possible to understand what is happening in the background: What data is used? How does this data weight the decision? Are certain groups perhaps unintentionally penalised?
An example: Imagine software that helps to sort applications. If this software is algorithmically transparent, it can explain why certain applicants receive an invitation to an interview and others do not - for example, because relevant professional experience counts more than place of residence.
Algorithmic transparency creates trust because it is possible to understand how digital decisions are made. Especially in times when artificial intelligence and big data characterise our everyday lives, transparency is crucial - for fairness, control and acceptance of new technologies.
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