How Blockchain Secures AI in the Face of Skepticism: Nuklai Founder Weighs in

As artificial intelligence (AI) continues to bleed into the smallest corners of everyday life, skepticism about its reliability grows in parallel. Concerns about opaque algorithms, unethical data practices, and a lack of accountability are pervading public discourse.

BeInCrypto sits down with Matthijs de Vries, founder of Nuklai, to discuss whether blockchain may be the solution.

AI’s ‘Black Box’ Problem, Why Blockchain Could Be the Answer

Blockchain is often only discussed along with cryptocurrency in public discourse. More recently, however, it has emerged as a surprising ally for AI.

AI technology may be able to change public perception by leveraging blockchain’s capacity to create transparent, auditable records of data usage, model training, and algorithmic decisions.

AI systems are often dubbed as “black boxes,” making decisions without offering much visibility into how those decisions are actually made. This lack of clarity is especially problematic in essential areas like finance, healthcare, and politics, where the stakes are high. Naturally, this causes the public view of its reliability to be shaken.

According to KPMG, three in five people, or 61%, are skeptical about trusting AI systems. 67% report low to moderate acceptance of AI. In industries, AI use in human resources is the least trusted and accepted, while AI use in healthcare is the most trusted and accepted.

Matthijs de Vries, founder of Nuklai, believes blockchain offers a solution.

“Blockchain plays a critical role in enhancing transparency and trust in AI by establishing clear ownership of both data and AI models. With blockchain, every transaction and modification is securely logged, creating a clear trail that anyone can verify,” de Vries told BeInCrypto in an interview.

Blockchain’s decentralized essence is built on transparency, which is a monumental strength in this particular context. This approach is a game-changer for AI development when it comes to using data ethically.

“High-quality, large-scale data is critical to AI development, yet access to this data is becoming increasingly restricted. Blockchain offers a way to reward data contributors fairly and ensure ethical data usage,” de Vries said.

Blockchain and AI in Science and Finance

This is especially relevant in healthcare. According to Frontiers in Digital Health, blockchain-backed AI tools in healthcare can enhance data security and improve patient trust by facilitating transparent data-sharing practices.

Comparison of medical supply chain applications and frameworks with blockchain. Source: Frontiers.

This is paramount as AI tools become more reliant on a breadth of diverse datasets to avoid biases. If blockchain integration were to materialize, healthcare systems could ensure that their AI tools are trained properly and can safeguard patient information.

In finance, blockchain is already becoming a cornerstone for transparency. According to the Journal of Business Research, the banking sector accounts for nearly 30% of blockchain adoption, making the industry its biggest supporter, and for good reason.

Blockchain Adoption by Industry Sector, 2024. Source: Journal of Business Research.

Blockchain can help track AI systems used in fraud detection or investment management, securing data integrity and regulatory adherence. This combination is powerful as financial institutions integrate AI systems into decision-making processes that require considerable accountability and public trust.

Advancements in Other Sectors

Beyond these sectors, blockchain-backed AI could improve transparency in politically sensitive areas. AI systems in public policy or election monitoring may face scrutiny for unclear algorithms. Blockchain’s ledger records every AI decision step, ensuring verifiability and added accountability.

One of blockchain’s most significant contributions to AI is its ability to resolve disputes. Blockchain provides an immutable record of data and processes, offering indisputable evidence for AI bias accusations. The same logic applies to creative industries like AI marketing, where it can tackle intellectual property issues or advertisement fraud.

“Blockchain cuts out the middlemen and gives you proof that things are real. This builds trust between advertisers, publishers, and consumers. It also helps stop ad fraud, making sure advertisers get what they pay for,” one researcher noted in a letter.

Blockchain doesn’t only help consumers to trust advertisers. It helps the marketing firms get their jobs done as well. One of the largest issues facing traditional advertisers is the lack of transparency in ad tracking and verification. As a result, agencies struggle to know if real people actually see their ads.

Blockchain solves this by creating a permanent record of ad views, clicks, and other interactions. The technology also mitigates direct communication between advertisers and publishers, cutting out middlemen like ad networks or agencies altogether.

Addressing Scalability and Interoperability Challenges

Despite all this potential, integrating blockchain with AI is no walk in the park. Scalability remains a substantial obstacle. Blockchain networks, by design, require substantial computational power, and combining them with resource-draining AI systems exacerbates the challenge.

According to a SpringerLink study, many blockchain platforms marketed as “production-ready” are still in experimental stages, with frequent updates causing compatibility issues. These limitations make it difficult to implement blockchain solutions at scale, especially for complex AI projects.

Interoperability is another question mark. A study published in IEEE Xplore stresses the lack of standardization across blockchain platforms, which creates fragmentation and slows down adoption. Due to these inconsistencies, developers struggle to integrate blockchain systems with existing AI frameworks.

“The user experience within Web3 remains a significant barrier. Many tools and platforms are not yet intuitive, creating a steep learning curve for those new to blockchain development,” de Vries added.

Yet, there is progress on the horizon. Collaboration across industries and open-source development are paving the way for scalable and user-friendly blockchain solutions. De Vries believes there is hope yet.

“We’re seeing an increase in joint efforts and ecosystem-building, where multiple projects work together to develop shared frameworks and solutions,” de Vries concluded.

As blockchain adoption grows, estimated by Statista to reach a global market size of $1.2 trillion by 2032, the integration of these technologies could redefine trust in systems that impact the global community.

Blockchain technology forecast to 2032. Source: Statista.

While some may be increasingly skeptical of artificial intelligence, blockchain delivers a path to transparency. It ensures that machines do not merely think but think responsibly. Whether safeguarding patient data, optimizing financial systems, or holding AI systems accountable, blockchain may just be the saving grace to end AI’s woes.

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