As
Congress
conducts
hearings
with
SEC
Chairman
Gary
Gensler
and
pushes
to
better
regulate
and
stimulate
the
evolving
digital
economy,
it
must
recognize
the
unique
needs
of
decentralized
AI
–
a
critical
yet
often
overlooked
sector
at
the
intersection
of
blockchain
and
artificial
intelligence.
Despite
this
crossover,
decentralized
AI
cannot
be
legislated
through
a
financial
lens,
nor
can
it
be
forced
into
AI
regulations.
Given
its
overlap
in
distinct
sectors,
however,
there’s
a
real
chance
lawmakers
will
try
to
fold
it
into
AI
and
crypto
bills
–
or
overlook
it
altogether
–
which
would
be
a
missed
opportunity
for
innovation
in
this
country.
Powerful
framework
Simply
put,
decentralized
AI
allows
for
the
distribution
of
data,
computation,
and
decision-making
processes
across
multiple
devices
or
nodes,
enabling
them
to
work
together
without
relying
on
a
centralized
authority,
often
utilizing
open
source
software
and
models.
This
gives
developers
the
tools
to
share
their
data
collaboratively
to
build
AI
models,
and
to
access
compute
from
a
diverse
range
of
sources.
It’s
a
powerful
framework
that
empowers
these
developers
to
contribute
to
the
AI
ecosystem
without
the
need
to
manage
the
entire
process
themselves,
enabling
researchers
and
startups
to
participate
in
a
field
where
rising
costs
and
difficulty
of
access
threaten
to
push
them
out.
That’s
why
it’s
imperative
lawmakers
not
overlook
decentralized
AI
as
they
begin
to
regulate
AI.
It’s
probably
human
nature
to
ignore,
considering
the
broader
AI
industry
is
exploding
and
dominated
by
some
of
the
world’s
biggest
corporations.
They’re
acquiring
startups,
pushing
advancements,
and
launching
new
products
at
a
breakneck
pace.
While
there’s
nothing
wrong
with
Microsoft,
Meta,
Alphabet,
and
others
investing
heavily
in
the
industry,
lawmakers
need
to
create
space
for
researchers,
entrepreneurs,
and
developers
to
thrive
as
well;
that
entails
among
other
things
remaining
vigilant
on
antitrust,
and
ensuring
that
government-backed
R&D
funds
don’t
benefit
the
giants
alone.
And
while
Congress
is
making
welcome
progress
to
advance
comprehensive
legislation
that
would
clarify
the
rules
of
the
road
for
crypto,
the
bills
are
one-dimensional
–
financial
in
nature
–
and
don’t
address
the
obvious
difference
between
an
underlying
digital
asset
of
a
protocol
versus
the
decentralized
AI
applications
running
on
the
same
protocol.
Financial
regulators
shouldn’t
end
up
overseeing
decentralized
AI
just
because
projects
issue
tokens;
that
would
be
like
the
SEC
regulating
toothpaste
because
Johnson
&
Johnson
issues
common
stock.
The
next
wave
It’s
important
we
get
this
right,
because
decentralized
AI
is
a
critical
field
that
can
salvage
the
organizations
that
gave
birth
to
the
AI
revolution
–
and
possibly
bring
us
the
next
wave.
The
universities
that
created
the
concept
of
machine
learning
and
neural
networks
are
under
threat,
as
they
cannot
compete
with
Big
Tech
as
it
snaps
up
the
world’s
GPUs
and
top
talent.
In
a
similar
vein,
the
kinds
of
startups
that
brought
AI
to
market
are
facing
similar
constraints
and
oftentimes
must
defer
projects.
Without
those
engines
of
U.S.
innovation
working
properly,
progress
will
rest
in
the
hands
of
a
few
large
corporations.
It’s
a
lesson
that
lawmakers
will
want
to
heed,
as
these
universities
and
small
businesses
help
form
the
fabric
of
the
American
economy,
and
create
jobs
and
opportunities
for
constituents.
Decentralized
AI
can
counter
this
trend
of
market
concentration.
The
field
allows
organizations
with
limited
funds
to
share
data
and
compute
across
nodes,
with
developers
stitching
together
a
network
of
multiple
databases
to
feed
their
models
and
dispersed
GPUs
to
power
them.
It’s
a
more
affordable
solution
that
allows
smaller
players
to
participate
and
contribute.
It
also
addresses
many
of
the
concerns
about
data
privacy:
developers
can
process
data
locally,
which
minimizes
the
need
to
transfer
sensitive
information
to
centralized
servers.
This
reduces
the
risk
of
data
breaches
and
unauthorized
access.
Congress’s
turn
All
this
goes
to
show
the
importance
of
establishing
rules
and
regulations
that
allow
decentralized
AI
to
flourish.
Congress
must
establish
clear
regulations
for
data
privacy
and
security
to
protect
individuals’
information
when
processed
locally,
and
promote
transparency
and
accountability
in
AI
algorithms
that
can
protect
ethical
standards
and
prevent
bias
in
decentralized
systems.
Lawmakers
should
consider
a
unique
regulatory
framework
for
decentralized
AI,
separate
from
traditional
AI
regulations
in
the
Algorithmic
Accountability
Act
and
from
financial
guidelines
covered
in
the
Blockchain
Regulatory
Certainty
Act.
The
new
legislation
would
need
to
address
the
particular
challenges
of
decentralized
AI,
ensuring
transparency
in
algorithmic
decisions,
and
providing
guidelines
on
accountability
in
decentralized
networks.
Further,
Congress
should
look
at
expanding
funding
opportunities
under
the
National
AI
Initiative
Act
to
ensure
decentralized
AI
projects
–
especially
those
from
universities
and
small
businesses
–
receive
government
R&D
funds
and
tax
incentives,
preventing
Big
Tech
from
monopolizing
AI
innovation.
Along
those
lines,
Congress
would
be
wise
to
consider
bolstering
antitrust
enforcement
to
stop
major
corporations
from
controlling
critical
AI
infrastructure.
And
the
responsibility
doesn’t
rest
solely
on
Congress’
shoulders.
With
lawmakers
paying
renewed
attention
to
crypto
and
AI,
now
is
the
time
for
proponents
of
decentralized
AI
to
speak
up
and
advocate
for
the
industry.
And
let’s
face
it,
the
industry
hasn’t
always
done
a
stellar
job
of
communicating
what
it
does
and
what
it
needs
to
thrive.
Yes,
the
technology
is
complex,
but
that
doesn’t
mean
advocates
can’t
go
beyond
the
technical
language
and
articulate
it
in
a
way
staffers
and
legislators
without
engineering
degrees
can
understand.
And
most
importantly,
it’s
critical
to
underscore
the
importance
of
getting
this
right,
as
a
way
to
preserve
innovation,
jobs
and
opportunity;
that’s
the
kind
of
language
that
resonates
with
members
of
Congress,
and
will
advance
this
field
to
the
next
level.
Note:
The
views
expressed
in
this
column
are
those
of
the
author
and
do
not
necessarily
reflect
those
of
CoinDesk,
Inc.
or
its
owners
and
affiliates.
