According to Microsoft's guidelines, transparency means that AI systems should be understandable, and users should be able to understand the system's decisions or recommendations. Providing an explanation for a loan denial allows applicants to understand how the AI arrived at its decision.
Reference:
https://www.linkedin.com/pulse/deep-dive-responsible-ai-digitalbricksai-typie

Generative AI (GenAI) is a form of artificial intelligence designed to create new, original content- such as text, images, video, audio, and code-in response to user-provided natural language prompts. Unlike traditional AI, which is often used for classification or analysis, GenAI mimics human cognitive processes to generate content based on patterns learned from vast datasets.
Key aspects of how Generative AI operates include:
*-> Natural Language Interaction: Users interact with GenAI using everyday, "plain-English" language, requiring no specialized coding skills to initiate requests.
*-> Prompt-Driven Output: The quality of the output depends largely on the prompt-a query, command, or description provided by the user.
Core Technologies: GenAI is powered by machine learning (ML), neural networks, and specifically Large Language Models (LLMs), which utilize transformer architectures to process inputs and predict content.
Iterative Refinement: Responses can be refined through further input, allowing users to collaborate with the tool to improve the output, such as modifying tone, length, or style.
Reference:
https://en.wikipedia.org/wiki/Generative_artificial_intelligence