Decentralizing Digital Due Diligence

Abstract

This chapter examines how decentralized governance models can improve accountability in AI-powered global supply chains by exploring the potential of Decentralized Autonomous Organizations (DAOs) for transparent and participatory digital due diligence. The work is intended for academics, policymakers, business leaders, and civil society organizations involved in supply chain governance and human rights protection. Using a conceptual and comparative analytical approach, the chapter reviews existing literature on AI-driven compliance systems and decentralized governance, and analyzes emerging initiatives such as the proposed Amnesty International DAO. The findings indicate that DAO-based governance can enhance transparency, stakeholder participation, and traceability in monitoring human rights risks, while also presenting challenges related to legal uncertainty, governance complexity, and scalability. The chapter concludes that hybrid governance models combining AI analytics with decentralized oversight may offer a more balanced framework for accountable and ethical SCM