The principle of transparency requires that any processing of personal data is fair, lawful and transparent to the data subjects. This means that data subjects should be informed about the existence, nature, purpose and consequences of the processing, as well as their rights and choices regarding their data. Transparency is essential for ensuring accountability, trust and compliance in data processing. However, the use of AI can pose challenges to the principle of transparency, as AI can lead to invisible processing, with data subjects not being aware of its presence, or the logic, significance and implications of the processing. For example, AI can be used to profile, infer, predict or influence the behaviour, preferences, interests, emotions or personality of data subjects, without their knowledge or consent. AI can also be used to make automated decisions that affect data subjects, such as credit scoring, recruitment, health diagnosis or social benefits, without providing meaningful explanations or opportunities for human intervention.Therefore, it is important to ensure that data subjects are informed and empowered when AI is involved in the processing of their data, and that they can exercise their rights, such as the right to access, rectify, object, restrict, erase or port their data, or the right to challenge or contest automated decisions56.Reference:

Guidance on AI and data protection5

Explaining decisions made with AI6