AI Transparency: Governance Compliance or Stakeholder Requirements?
Transparency is increasingly mandated for public-sector AI systems, with organisations required to publish statements describing their AI use and oversight arrangements. However, the existence of such artefacts is often treated as equivalent to transparency itself, despite limited evidence that they proportionately serve relevant stakeholder groups. From a requirements engineering perspective, this raises a validation concern: compliance with mandated disclosure criteria does not necessarily ensure transparency adequacy for stakeholders with different levels of risk exposure, decision control, and involvement. This paper presents an empirical analysis of 92 publicly available AI transparency statements published by Australian Government agencies under the national AI governance mandate. We introduce the stakeholder Risk--Control--Involvement--Need (RCIN) framework to differentiate stakeholder classes according to their structural position and transparency needs. Using a structured rubric derived from the mandated criteria, we evaluate how both the mandate and published statements are calibrated to each stakeholder class. The findings show that while structural compliance is widespread, transparency calibration is uneven. Criteria serving high-control stakeholders are consistently realised, whereas criteria most critical for high-risk, low-control stakeholders are fewer and less substantively addressed. We conceptualise this as the Transparency Illusion: a condition in which transparency appears satisfied through compliant artefacts yet remains unevenly calibrated to stakeholders bearing the greatest exposure to AI-supported decisions. The study frames transparency as a stakeholder-calibrated validation problem, demonstrating that artefact-level compliance does not constitute requirements validation in this context.