AI and Transparency: Why the Two Need to Grow Up Together

Everywhere you turn in ad tech, someone’s launching a new AI tool promising smarter targeting, faster optimization, or better ROI. It sounds exciting (and it is for the most part), but here’s the catch: most of these systems are still black boxes.

For buyers, that creates a big problem. If an algorithm is deciding where your ads run, how much you pay, and what “success” looks like, shouldn’t you know why it made those calls?

Right now, too many campaigns run on “just trust me bro and the machine.” That’s not sustainable. Advertisers deserve to see the logic behind the spend, not just the output. Publishers deserve clarity on how their inventory is being valued. And the industry as a whole needs to avoid repeating the same mistakes we made with opaque auction fees and hidden reseller chains.

The Reality Check

AI in advertising isn’t going anywhere...it’s going to power more bidding, more targeting, and more reporting than ever. But speed without transparency does not build trust.

Here’s what buyers actually want to know:

• Where did my ads run? Not just the site or app, but the real placement quality.

• Why did the system choose that inventory? What signals were used?

• What drove performance, and what didn’t? Not vanity metrics, but real impact.

This is where transparency and AI have to mature together. If algorithms stay opaque, they’ll eventually hit a wall with brands, regulators, or worse both.

What to Watch for Next

We’re already seeing regulators look at auction practices, reserve pricing, and disclosure rules. It’s not a stretch to think algorithmic transparency could be next.

Advertisers should start asking:

• Does my partner give me clear reporting beyond standard KPIs?

• Can I explain why certain inventory was bought or excluded?

• Are there checks to catch bias, bad placements, or junk supply before it goes live?

The best tech in the world means nothing if the people paying for it don’t understand what’s happening under the hood.

The Takeaway

AI should make advertising smarter and clearer. The goal isn’t just automation, it’s about confidence.

As an industry, we need to move toward explainable AI: meaning systems that deliver performance and show their work, duh. Otherwise, we risk building the future of advertising on blind faith.

Transparency isn’t optional, it's how AI in programmatic grows up.