Introducing a new standard for AI governance

Yes – thanks to the proliferation of AI-focused legislation around the world, including the EU AI Act and the California AI Accountability Act, organizations are facing a new urgency to define and implement clear governance strategies to ensure their AI data management practices are in line with emerging regulations.

Blockchain’s distributed ledger features make it prohibitively difficult for third-parties to tamper with data once it’s been recorded. There is no single point of failure, meaning that organizations can reliably audit highly serialized data sets and readily confirm whether or not data has not been altered – and if it has been, determine when, and by whom. This feature is crucial for maintaining the integrity of data used by AI, particularly in industries where high-risk AI applications are a regular occurrence. 

This enhanced visibility can enable more efficient internal workflows, as well as help demonstrate regulatory compliance. Storing AI algorithms and models on the blockchain also enables third parties to audit and verify the AI’s fairness, safety, and non-discrimination, which are essential aspects of compliance with the AI Act.

These benefits don’t just apply to AI systems that are higher up on the risk-scale. Blockchain-powered smart contracts can be useful for those with “limited risk,” too. Self-executing contracts can automate compliance processes within AI models, enforcing data protection and privacy standards specified by the AI Act, including the requirement for explicit consent for data processing, or the right to explanation for automated decisions. 

Learn how Casper’s new governance tool can help your business keep up with new regulations.

Any AI expert will tell you that the technology’s transformative benefits come with significant risks. From rising data privacy concerns, to the proliferation of deepfakes and misinformation, to recurring hallucinations among chatbots, businesses and consumers alike are growing increasingly aware of where AI systems today fall short. 

Because of this, policymakers in the European Union (EU) saw the need to create comprehensive guardrails in this evolving market. On March 13, 2024, the EU parliament passed the landmark AI Act. It was the first time in which an extensive set of regulations was approved for the purpose of governing AI-human interactions. 

At its core, the EU AI Act is a document that outlines the levels of risk for AI applications across industry use cases, and establishes standardized measures to monitor and report AI-related threats to human wellbeing and fundamental rights. Now, companies are able to evaluate their own AI products against specific criteria to ensure a safer, more ethical user experience.