AI-driven DAOs

Abstract

This chapter proposes a framework for understanding the spectrum of involvement of Artificial Intelligence (AI) in Decentralized Autonomous Organizations (DAOs). This algorithmic governance model proposes combining the decentralized and deterministic nature of DAOs with the autonomous and adaptable capabilities of AI agents. It analyzes the historical development of AI and the technical affordances of DAOs for AI integration. Then, it presents the framework of AI involvement in DAOs across two dimensions (i.e., decision-making and execution) and three levels (i.e., AI-assisted, AI-dominant, and AI-only), accompanied by examples for each case. It then critically analyzes the limitations of AI-driven DAOs across infrastructural, operational, interpersonal, and societal dimensions. The chapter concludes by arguing that the development of AI-driven DAOs necessitates interdisciplinary collaboration and public dialogue to ensure their design and governance promote empowerment, inclusion, and positive social change.