EU AI Act Transparency in Practice: How Article 13 Changes Software Purchasing Decisions

The transparency principle in the EU AI Act: beyond the basics

The transparency principle in the EU AI Act goes far beyond having a nice privacy policy on your website. When your company contracts software, you are outsourcing the processing of personal data and AI systems - and this requires the vendor to be crystal clear about how, when and why they process this information.

But here's the problem: how many companies really know if their software vendors comply with this principle? Transparency isn't just about communicating what they do with data. It's about allowing you, as the contracting party, to have real control over the processing.

Consider this scenario: you contract a CRM that promises "full EU AI Act compliance". Six months later, you discover they share data with partners for "product improvement" - information buried in paragraph 47 of the terms of use. Is this transparency?

Article 13 of the EU AI Act establishes that transparency must ensure clear, precise and easily accessible information about processing. For companies buying software, this means requiring from the vendor not just well-written policies, but detailed technical documentation about:

• Data flows
• Integrations
• Security procedures

Effective transparency allows you to make informed decisions about risks, properly configure tools and maintain the necessary control to fulfill your own obligations as a data controller.

How to evaluate software transparency before purchase

Evaluating EU AI Act transparency of software requires going beyond superficial reading of privacy policies. You need a structured methodology that reveals how the vendor actually treats data in practice.

Start with data architecture

Request a detailed diagram showing where data is stored, processed and transferred. A transparent vendor will have this documentation ready and updated. If they hesitate or offer only vague descriptions, this is already a warning sign.

Test information accessibility

Is information about data processing easily findable? A vendor that follows EU AI Act principles makes this information available in clear language, not incomprehensible legal jargon. Look for specific sections about:

• Data location
• Retention policies
• Third-party sharing

Analyze control granularity

Transparent software offers detailed settings about which data to collect, how to process it and with whom to share. Imagine you need to disable behavioral analytics for compliance reasons - does the system allow this easily?

Verify traceability

Ask for audit logs and data activity reports. Transparent vendors maintain detailed records that you can access to demonstrate compliance.

The main takeaway: real transparency manifests in accessible technical documentation, granular controls and continuous audit capability.

Practical checklist: 5 essential transparency questions for vendors

When evaluating EU AI Act transparency of a vendor, these five questions will quickly reveal the real level of compliance and technical readiness of the company.

1. "Where exactly will our data be stored and processed?"

Demand specific datacenter locations, not just "in the cloud". Transparent vendors inform country, region and even infrastructure provider. This is crucial for evaluating international transfers and adequacy under Article 13 of the EU AI Act.

2. "How can we audit data processing in real time?"

Request demonstration of:

• Dashboards
• Audit logs
• Automated reports

The ability to continuously monitor what happens with your data is a direct indicator of operational transparency.

3. "Which third-party integrations process our data?"

Ask for complete list of:

• Subprocessors
• Connected APIs
• Analytics tools

Many vendors hide dozens of integrations that can compromise data privacy.

4. "How do you notify us about changes in processing practices?"

Evaluate if there's a structured communication process. Transparency includes proactively warning about changes that impact data processing, not just silently updating policies.

5. "Can we configure retention and deletion of data by category?"

Test control granularity. Truly transparent software allows configuring different retention policies for different types of personal data.

Use these questions as an initial filter. Vendors who respond with clarity and technical detail demonstrate maturity in transparency.

Red flags: warning signs in software transparency

Certain vendor behaviors indicate serious problems with EU AI Act transparency that can compromise your compliance. Recognizing these signs early prevents future headaches.

Evasive language about data location

Evasive language about data location is the first red flag. Phrases like "globally processed data" or "distributed infrastructure" without geographical specifications indicate lack of control or deliberately vague transparency. Serious vendors know exactly where your data is.

Generic privacy policies

Generic privacy policies represent another critical alert. If the policy seems applicable to any tech company, it was probably copied from a template. Transparent policies specifically describe how that product treats data, not generalities about "service improvement".

Resistance to technical demonstrations

Resistance to technical demonstrations reveals deep problems. When vendors avoid showing control dashboards, privacy settings or audit logs, it's usually because these features don't exist or are inadequate.

Frequent and silent policy changes

Frequent and silent policy changes directly violate EU AI Act principles. Monitor vendors who update terms monthly without clear communication about what changed and why.

Absence of DPO or privacy contact

Absence of DPO or identified privacy contact is an absolute red flag. If you can't identify who's responsible for privacy issues at the vendor company, how will you ensure transparency in critical situations?

When you detect these signs, immediately reassess vendor viability. Poor transparency today means compliance problems tomorrow.

How to document transparency assessment for compliance

Properly documenting your EU AI Act transparency assessment is essential to demonstrate due diligence in audits and protect your company from future liability.

Create a structured evidence record

For each evaluated vendor, maintain digital folder containing:

• Dated version of privacy policies
• Screenshots of control settings
• Written responses to your technical questions
• Provided architecture diagrams

This documentation proves you exercised reasonable diligence.

Implement standardized evaluation matrix

Develop scorecard that scores specific criteria:

• Policy clarity
• Control granularity
• Audit capability
• Change communication

This allows objective vendor comparison and justifies decisions to internal committees.

Record the decision-making process

Document not just what was evaluated, but how you reached the conclusion. Imagine you need to explain to regulators why you considered a vendor adequate - your documentation should tell this complete story.

Establish continuous review schedule

Transparency isn't a one-time assessment. Set alerts to review vendors semi-annually, monitor policy changes and reassess adequacy according to Article 13 of the EU AI Act.

Maintain audit trail of communications

Save emails, meeting minutes and technical responses from vendors. These records demonstrate active engagement in transparency verification.

The goal is to create documentation that proves not only that you assessed transparency, but that you did so methodologically and continuously.

Conclusion

Summary of main points and practical template for transparency assessment in new software, with completed example

Create your free account and start today