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Home»Taxes & Regulation»AI can’t scale without trust. Trust starts with the data layer
Taxes & Regulation

AI can’t scale without trust. Trust starts with the data layer

May 31, 2025No Comments2 Mins Read
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The world of artificial intelligence (AI) is powered by data. However, the reliability and ethical considerations surrounding data have come into question in recent years. The exponential growth of generative AI has raised concerns about the quality and legality of the data being used to train these models.

OpenAI, a prominent player in the AI space, faced a staggering $7 billion bill in 2024 just to maintain its models, highlighting the immense costs associated with data usage at scale. Additionally, legal challenges such as copyright lawsuits and disputes with authors have underscored the need for trustworthy data supply chains in the AI industry.

Synthetic data and web scraping have been proposed as solutions to the data quality issue, but they come with their own set of challenges. Synthetic data often lacks the depth and nuance of real-world data, leading to performance issues in critical applications like healthcare. Web scraping, on the other hand, not only poses legal risks but also fails to provide reliable and verifiable data sources.

Blockchain technology has emerged as a potential solution to the AI data crisis. By leveraging blockchain’s core capabilities such as traceability, immutability, and verifiability, AI systems can ensure the origin and integrity of their training data. Smart contracts powered by blockchain technology can automate payment flows and enforce consent, creating a transparent and auditable data ecosystem.

Building a new data economy based on consent, compensation, and accountability is crucial for the future of AI. Companies must prioritize ethical data collection practices, compensate individuals for their data contributions, and ensure full data lineage to build trust with users and regulators. This shift towards a more ethical and transparent data economy will not only benefit AI innovation but also reduce environmental costs associated with inefficient data practices.

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In conclusion, the future of AI lies in clean, verifiable data. By investing in data integrity and leveraging blockchain technology, AI innovators can build a more ethical and sustainable AI ecosystem. It’s time to prioritize transparency and fairness in AI development before legal issues and performance challenges dictate the future of the industry.

Data Layer scale starts Trust
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