The Cost of Shadows in Digital Innovation
Kayode Adeniyi
LSE Management '25 | Digital Transformation, Innovation & Sustainability
In 2018, a bridge collapsed in Genoa, Italy, killing 43 people.
The tragedy wasn’t sudden, it was the product of years of hidden data on structural weaknesses that never reached the public. If the information had been available, engineers and policymakers might have intervened, saving lives and rebuilding trust.
That’s the cost of asymmetrical information. When one side knows and the other doesn’t, bad decisions get made, risks grow unchecked, and progress stalls.
Nowhere is this clearer today than in Artificial Intelligence (AI) and digital innovation.
These technologies hold staggering potential: AI could contribute $15.7 trillion to the global economy by 2030, according to PwC.
But that’s only if we trust it. And trust, in AI as in life, comes from visibility.
Consider an AI tool designed to optimize traffic flow in a city. It looks like a win: faster commutes, lower fuel consumption, cleaner air.
But what if the system favors affluent neighborhoods because those areas provide better data?
What if poorer neighborhoods, where fewer people use digital navigation tools, get overlooked?
If the engineers behind the system know this and city planners don’t, decisions get made in the dark. Now scale that imbalance:
The math is simple, but the consequences are massive.
When digital systems prioritize transparency, the outcomes improve for everyone.
Take AI in public health. In 2020, researchers discovered that certain AI diagnostic tools performed better in European hospitals than in African ones, not because the algorithms were bad, but because the datasets were incomplete.
Once the gap was identified and addressed, diagnostic accuracy rose by 15% across diverse populations.
The lesson?
Sunlight works. Biases and flaws don’t disappear in secrecy; they multiply.
Transparency isn’t just about fairness, it’s about progress. In the US, the requirement for hospitals to publish surgery costs and outcomes led to 12% faster improvements in quality metrics.
Why?
Because patients started asking better questions, and hospitals responded by raising their standards.
Innovation thrives when systems are accountable.
But when developers, corporations, or policymakers keep digital systems opaque, they risk losing the trust that fuels adoption.
AI can transform industries, empower individuals, and solve problems at a scale we’ve never seen.
But history is clear: technology succeeds when it serves informed users, not passive consumers.
This isn’t idealism. It’s pragmatism. Transparency doesn’t slow innovation; it multiplies its impact.
The cities that publish their traffic data improve commutes faster. The companies that share their AI’s limitations build better products. The industries that embrace sunlight don’t just survive, they grow.
In a world driven by digital systems, trust is the new currency. And trust doesn’t come from secrets. It comes from clear, relevant, and honest information.
Because when we can see where we’re going, we all get there faster.