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International In-house Counsel Journal logoInternational In-house Counsel Journal logo

Can blockchain technology help mitigate the black box phenomenon of AI applications?

Abstract

In the rapidly evolving landscape of cutting-edge technologies, AI-driven business cases and blockchain solutions are like two relatives who don´t know each other. The reason is that the AI-inherent black box phenomenon stands in contrast to the transparency offered by blockchain technology. The term “black box” in the context of AI refers to the intransparency of AI systems where the internal workings and decision-making processes are not easily understandable. The general opacity of neural network-derived models, and particularly the recent wave of generative AI models (sometimes referred to as “black box” models) can lead to challenges in trust, accountability, and explainability. Users and developers often find it difficult to interpret how specific inputs are transformed into outputs, making it hard to diagnose logical and semantic errors (including hallucinations) or biases in the results. On the other hand, blockchain technology is celebrated for its transparency and immutability. Every transaction is recorded on a public ledger, accessible to all participants, ensuring a high level of trust and security. This transparency is particularly appealing in applications where accountability and traceability are paramount.

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Authors

Portrait image of Matthias Artzt
Matthias Artzt
Senior Legal Counsel, Deutsche Bank AG, Germany

Dr. Matthias Artzt is an internationally recognized and certified lawyer and senior legal counsel at Deutsche Bank AG. He advises internal clients globally regarding data protection issues as well as complex international outsourcing agreements involving data privacy-related matters and regulations. Matthias is a graduate of the University of Tübingen, Germany, where he obtained his Doctor of Law, and a Certified Information Privacy Professional/Europe (CIPP/E) at the IAPP. He authored numerous articles on data protection law and is a regular speaker at various national and international conferences, e.g., at the Central Bank of Brazil and the Ecosystems 2030 in Spain. Further, he is a guest lecturer in postgraduate law courses at the University of Brunswick, Canada and the University of Brasilia, Brazil. Matthias has an in-depth knowledge of the GDPR and its interfaces with other cutting-edge technologies, such as Cloud Computing, Artificial Intelligence, Blockchain, and Metaverse. Matthias is the editor-in-chief of the International Journal of Blockchain Law (IJBL) as well as the co-editor and co-author of the International Handbook of Blockchain Law and the International Handbook of AI Law, both published by Wolters Kluwer.

Portrait image of John deVadoss
John deVadoss
Board Member, Global Blockchain Business Council, USA

John deVadoss is as a Board Member of the Global Blockchain Business Council. He is a co-founder of the InterWork Alliance and of NeuralFabric Corp. Previously, he built developer tools that are used by the Fortune 500 and leading blockchain projects. Earlier, John pioneered SOA, and incubated Cloud/SaaS for Microsoft. Much earlier, he did his PhD work in AI.

Companies

Deutsche Bank AG logo

Deutsche Bank AG

Deutsche Bank AG

Global Blockchain Business Council logo

Global Blockchain Business Council

The Global Blockchain Business Council (GBBC) is the leading industry association for the blockchain technology ecosystem.

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