As Congress engages in discussions with SEC Chairman Gary Gensler and aims to regulate and support the ever-changing digital economy, it is crucial for lawmakers to prioritize decentralized AI. This sector, which sits at the crossroads of blockchain and artificial intelligence, plays a vital role but is often overlooked in legislative conversations.
Decentralized AI is a system that allows for the distribution of data, computation, and decision-making processes across various devices or nodes. This framework enables collaboration without the need for a centralized authority, utilizing open source software and models. Developers can share data, build AI models, and access computing power from a variety of sources, empowering them to contribute to the AI ecosystem without managing the entire process themselves.
Despite the explosive growth of the broader AI industry dominated by tech giants like Microsoft, Meta, and Alphabet, lawmakers must create space for researchers, entrepreneurs, and developers to thrive. While financial regulations for crypto are advancing, they do not address the nuances of decentralized AI applications running on the same protocols. Regulating decentralized AI solely based on the issuance of tokens would be akin to the SEC overseeing toothpaste because a company issues common stock.
Decentralized AI has the potential to rejuvenate organizations that pioneered the AI revolution and usher in the next wave of innovation. Universities and startups that laid the foundation for AI are struggling to compete with Big Tech’s resources and talent acquisition. By allowing smaller players to collaborate, share resources, and contribute to AI development, decentralized AI can counter the trend of market concentration and foster innovation.
To ensure the thriving of decentralized AI, Congress must establish regulations that safeguard data privacy, promote transparency in algorithmic decisions, and prevent bias in decentralized systems. A unique regulatory framework tailored to the challenges of decentralized AI should be developed, separate from existing AI and financial regulations. Additionally, expanding funding opportunities for decentralized AI projects, especially those from universities and small businesses, can prevent monopolization of innovation by tech giants.
Advocates of decentralized AI must communicate the industry’s importance clearly to lawmakers and policymakers. By emphasizing the need to preserve innovation, jobs, and opportunities, proponents can rally support for the industry and propel it to new heights. It’s crucial for stakeholders to engage with Congress and ensure that regulations and policies support the growth of decentralized AI for the benefit of the broader economy and society.