Unlike a human judge, whose mental process is hidden, an AI dispute resolution system can be designed to provide a full audit trail. It can be required to 'show its work,' explaining its step-by-step reasoning, potentially offering more accountability than the current system allows.

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The need for explicit user transparency is most critical for nondeterministic systems like LLMs, where even creators don't always know why an output was generated. Unlike a simple rules engine with predictable outcomes, AI's "black box" nature requires giving users more context to build trust.

Instead of trying to anticipate every potential harm, AI regulation should mandate open, internationally consistent audit trails, similar to financial transaction logs. This shifts the focus from pre-approval to post-hoc accountability, allowing regulators and the public to address harms as they emerge.

Instead of creating rigid systems, formalizing policies makes rules transparent and debatable. It allows for building explicit exceptions, where the final "axiom" in a logical system can simply be "go talk to a human." This preserves necessary flexibility and discretion while making the process auditable and clear.

An AI arbitration system can repeatedly summarize its understanding of claims and evidence, asking parties for corrections. This process ensures parties feel heard and understood—a key element of procedural fairness that time-constrained human judges often cannot provide.

While AI can inherit biases from training data, those datasets can be audited, benchmarked, and corrected. In contrast, uncovering and remedying the complex cognitive biases of a human judge is far more difficult and less systematic, making algorithmic fairness a potentially more solvable problem.

As AI models are used for critical decisions in finance and law, black-box empirical testing will become insufficient. Mechanistic interpretability, which analyzes model weights to understand reasoning, is a bet that society and regulators will require explainable AI, making it a crucial future technology.

A significant portion of B2B contracts will soon be negotiated and executed by autonomous AI agents. This shift will create an entirely new class of disputes when agents err, necessitating automated, potentially on-chain, systems to resolve conflicts efficiently without human intervention.

As AI capabilities accelerate toward an "oracle that trends to a god," its actions will have serious consequences. A blockchain-based trust layer can provide verifiable, unchangeable records of AI interactions, establishing guardrails and a clear line of fault when things go wrong.

Treat accountability as an engineering problem. Implement a system that logs every significant AI action, decision path, and triggering input. This creates an auditable, attributable record, ensuring that in the event of an incident, the 'why' can be traced without ambiguity, much like a flight recorder after a crash.

GenLayer's platform acts as a decentralized judicial system for AI agents. It goes beyond rigid smart contracts by using a consensus of many AIs to interpret and enforce "fuzzy," subjective contractual terms, like whether marketing content was "high quality." This enables trustless, automated resolution of complex, real-world disputes at scale.