Now think of Josefa, that same diligent Filipina entrepreneur, investing all her time and money into her sole proprietorship. She imagines going beyond that, of hiring more people in her hometown. When she goes to take out a loan, she gets denied. Her business isn’t failing, it’s booming! A predatory AI algorithm, taught by the same biased data, calls her a “high-risk” investment. This isn’t some future dystopian nightmare—it’s today’s reality for millions of entrepreneurs, especially in developing economies like the Philippines. AI, the great equalizer, isn’t solving these problems; it’s exasperating inequalities. Frankly, it makes my blood boil.

AI Lending Discriminates Against Marginalized

We’ve been sold the lie that AI is somehow more “objective,” that it gets human emotion out of the financial decision-making process. That's a dangerous lie. These systems are inherently biased, developed from historical data, data that already shows the effects of societal bias. Take OpenAI's GPT-4 Turbo, for example. What we found The simulations uncovered a stark bias. By having stricter credit score requirements for specific demographics—even though they were at the same financial status as white applicants—a lender was committing discrimination. This isn’t an unfortunate software bug; it’s indicative of a broader systemic issue.

It's not limited to traditional finance. The DeFi and crypto space, which has been marketed as the future of finance, is equally susceptible. AI-powered market forecasting platforms, relying on biased historical data and social media sentiment, can lead to wild overreactions and disastrous investment decisions. What about the small investor, the single mother trying to build a better future through crypto, who loses everything because of an AI's flawed prediction? Where's the justice in that? This isn't progress; it's digital redlining.

These AI systems are often black boxes. Otherwise, we’ll never understand why they make the decisions they do. We can’t have this lack of transparency, particularly when it is an issue at stake as important as our financial well-being.

Blockchain's Immutability Fixes This

There's hope. When blockchain technology is used in conjunction with Explainable AI (XAI), it provides a potent antidote to AI bias and opacity. Consider it a digital immune system for your money.

Blockchain also offers added immutability, traceability and auditable records of AI decision-making. It’s as though we had a permanent, unalterable audit trail for each and every financial transaction and AI-driven decision. XAI sheds light on why a particular decision-making AI arrived at its conclusion. It helps illuminate the black box by shining a light into how the algorithm arrived at its decision. Together, these two important reforms form a powerful system of checks and balances, helping to guarantee taxpayer dollars are used fairly and accountable.

Take for example FICO’s use case for blockchain to record AI model decisions for credit approvals. Regulators are able to follow the decision-making process, uncovering bias and allowing for accountability of institutions. This is a game-changer.

And the promise goes well beyond financial services. Imagine XAI combined with on-chain verification transforming decision-making in Web3, explaining DAO voting or assessing risk in DeFi lending protocols. At once, the dark complicated world of decentralized finance comes into the light and is opened up to all. SingularityNET and Ocean Protocol are among the pioneering forces in this cutting-edge space. In doing so, they’re building a future where AI is transparent, ethical, and accountable.

Blockchain is more than cryptocurrency. It’s about the development of new systems that relieve us from the need to blindly trust centralized institutions or darkening algorithms. Finally, key to empowering those individuals and communities is empowering them to control their own financial futures.

Demand Transparency, Support Blockchain

Now, I know what some of you are thinking: "This sounds complicated." And yes, the technology can be complex. But the underlying principle is simple: transparency and accountability are essential for a fair financial system.

We can’t relax and expect that AI developers will suddenly be able to wave a magic wand and remove bias from their algorithms. This is why we must hold Wall Street and other financial institutions accountable. We need to encourage blockchain-based solutions that maximize fairness, transparency, and accountability. First, we need to demand that regulators introduce strong policies that go beyond mere non-discrimination and proactively prevent algorithmic discrimination.

And this isn’t merely a technological concern. This is a justice issue. It’s about making sure that every American, no matter who they are or where they live, has a level playing field to prosper. Together, let’s create a future where new technologies—including AI—empower us all and where financial opportunity becomes real, meaningful, and attainable for everyone. Josefa, and so many others like her, for whom we are deeply thankful this week, deserve nothing less. But don’t let AI just be another tool of oppression. Demand better. Build better.

  • Ask questions: When applying for a loan or making an investment, ask how AI is being used in the decision-making process. Demand transparency.
  • Support blockchain-based financial solutions: Explore DeFi platforms and projects that prioritize transparency and fairness.
  • Contact your elected officials: Urge them to support policies that regulate AI in finance and promote algorithmic accountability.

This isn't just about technology; it's about justice. It's about ensuring that everyone, regardless of their background or location, has a fair chance to succeed. Let's build a future where AI empowers, not oppresses, and where financial opportunity is truly accessible to all. Josefa, and countless others like her, deserve nothing less. Don't let AI become another tool of oppression. Demand better. Build better.