Smart technology is already present in many areas of everyday life. People rely on algorithms in crucial life domains such as finance and healthcare, and the smart car promises a more relaxed driving experience-all the while, the technology recedes further into the background. The smarter the technology, the more intransparent it tends to become. Users no longer understand how the technology works, what its limits are, and what consequences regarding autonomy and privacy emerge. Both extremes, total invisibility and total transparency, come with specific challenges and do not form reasonable design goals. This research explores the potential tension between smart and invisible versus transparent and understandable technology. We discuss related theories from the fields of explainable AI (XAI) as well as trust psychology, and then introduce transparency in smart spaces as a special field of application. A case study explores specific challenges and design approaches through the example of a so-called room intelligence (RI), i.e., a special kind of smart living room. We conclude with research perspectives for more general design approaches and implications for future research.
