The importance of transparency in algorithmic decision-making pertains to ensuring that the processes and criteria by which decisions are made are clear and understandable to stakeholders. Transparency contributes to trust in automated systems, enabling affected individuals to comprehend how decisions are derived and what data is being used. This is especially vital in sectors like finance, healthcare, and law enforcement, where biased or opaque algorithms can lead to unfair outcomes. Transparency ultimately enhances accountability and supports ethical use of technology.