Ethics and Regulation of AI DAOs: Governing the Machines That Govern Finance
The rise of AI-driven DAOs decentralized autonomous organizations that make decisions and execute strategies without human oversight is forcing finance into uncharted territory. While the combination of artificial intelligence, tokenized real-world assets (RWAs), and programmable money promises efficiency and innovation, it also raises profound ethical and regulatory questions. Who is responsible when an AI DAO makes a mistake? Can a machine be trusted with billions in assets? And how do governments regulate organizations with no human management at the helm? The Ethical Dilemmas of AI DAOs At the heart of AI DAOs is the idea of autonomy. Code, not people, decides how assets are allocated, loans issued, or payments made. This autonomy introduces ethical challenges: Accountability gaps: If an AI DAO mismanages funds or engages in harmful behavior, who bears responsibility developers, token holders, or no one? Bias and fairness: AI […]
