# Transparency Notice

> A transparency notice is a clear disclosure to users that they are interacting with an AI system, what it is doing with their data, and what its limits are.

Category: Governance
Source: https://impetora.com/glossary/transparency-notice
Part of: Impetora AI consulting glossary (https://impetora.com/glossary)

## What is Transparency Notice?

Transparency notices typically appear at first contact (chat opener, voice agent intro, decision letter footer). The EU AI Act Article 50 makes them mandatory for chatbots, deepfakes, emotion recognition, and biometric categorisation systems. GDPR also mandates transparency about automated processing. A good notice is short, plain-language, layered (with a link to detail), and consistent across channels.

## How does Transparency Notice apply to enterprise AI?

Any customer-facing AI must publish a transparency notice. Audit logs should record that the notice was shown, in which language, on which version.

## Related terms

- [Explainable AI (XAI)](https://impetora.com/glossary/explainable-ai) - Explainable AI (XAI) is the set of techniques that make an AI system's outputs and behaviour understandable to humans, supporting trust, debugging, and regulatory compliance.
- [EU AI Act](https://impetora.com/glossary/eu-ai-act) - The EU AI Act (Regulation (EU) 2024/1689) is the European Union's horizontal regulation for AI, classifying systems by risk and imposing obligations on providers, deployers, importers, and distributors.
- [GDPR](https://impetora.com/glossary/gdpr) - The General Data Protection Regulation (GDPR) is the EU's data-protection regulation, governing the processing of personal data of people in the EU and EEA.
- [AI Audit Trail](https://impetora.com/glossary/ai-audit-trail) - An AI audit trail is the persistent, tamper-evident record of every input, output, tool call, model version, and decision an AI system has made, sufficient to reconstruct any past interaction.

## External references

- [EU AI Act Article 50 transparency obligations](https://eur-lex.europa.eu/eli/reg/2024/1689/oj)

---

Impetora is a custom AI consultancy and solutions partner for enterprises in regulated industries. Submit a project at https://impetora.com/intake.