From KYC to ‘Know-Your-AI’ — Adapting identity verification for an AI-powered future.

by

in
– 8 mins read

Table of Contents

As technology evolves and artificial intelligence (AI) becomes more advanced, the systems we rely on for user verification are increasingly being pushed to their limits. For thousands of years, verifying the authenticity and reputation of customers and businesses has always been a cornerstone of security. But with AI models capable of generating hyper-realistic deepfakes and synthetic identities, traditional methods are no longer secure, creating a major risk to digital security. The challenge of distinguishing genuine users from artificially created personas is growing, and existing systems struggle to keep up. In some cases, AI is going even further, creating companies and users on its own – free of human decision-makers.

From Customer Service to Business Decision-making, AI systems are becoming central to how we interact online. Upsides of such systems are clear: better production, deeper personalisation, faster delivery, etc.. Though, it raises critical questions: How can we ensure the integrity of these interactions when the very systems we use for verification are falling behind?

The future of user verification is uncertain, but one thing is clear: most tools we use today are inadequate for the challenges of tomorrow. With AI set to play an even larger role in shaping digital interactions, we must rethink how we approach security and trust. Time has come to explore new solutions beyond current digital verification systems and adapt to the complexities of an AI-driven World.


TL;DR

As AI advances, traditional user verification systems like KYC struggle to keep up with deepfakes and synthetic identities, creating new risks for digital trust. The concept of KY-AI (Know-Your-AI) proposes verifying AI systems and their origins to tackle these challenges. Certifications like the RMA™ Badge offer a dynamic solution to ensure trust and compliance in AI-driven projects, redefining identity verification for an AI-powered future.


About the Author

Ben Rogers

Ben Rogers — Co-founder of VaaSBlock

Ben Rogers is a seasoned authority on blockchain strategy, digital marketing, and business growth. With a proven track record across various industries, he has established himself as a thought leader in the Web3 world. Ben’s extensive experience in transforming businesses from concept to commercialization includes fostering partnerships and implementing innovative strategies that drive exponential growth. He has spearheaded initiatives leading to record-breaking market adoption, token valuations, and industry partnerships within the blockchain sector. His hands-on approach ensures companies are not only technically proficient but also operationally credible and compliant with industry standards. Ben plays a pivotal role in elevating blockchain projects to new levels of credibility and operational excellence, making him a key figure in shaping the future of blockchain governance.

 

Rethinking User Verification in the Age of AI

User verification systems, long anchored by Know Your Customer (KYC) processes, are at a crossroads. As digital interactions grow and artificial intelligence (AI) advances at breakneck speed, the ability to accurately verify the authenticity of users has become a critical challenge. Despite their foundational role in preventing fraud and ensuring compliance, traditional KYC methods are showing their age. They struggle not only with inefficiencies and scaling issues but also with detecting increasingly sophisticated AI-generated threats like deepfakes and synthetic identities.

Despite growing challenges, innovation seems to move away from improved verification, leaning toward more anonymity. Emerging technologies such as decentralized identity (dID) solutions are gaining traction as potential disruptors in the verification space. By allowing users to delete and control their data securely, dID promises greater privacy and scalability. The apparition of more and more opaque solutions highlights the growing demand for user-centric solutions that can meet the challenges posed by Web3 and decentralized systems. Yet, even dID solutions may face hurdles in proving the “humanity” of their users as AI becomes more indistinguishable from real individuals.

The current state of verification technology calls for nothing short of a revolution. Our existing systems, while functional, are not equipped to handle the threats or complexities of a world where AI is poised to dominate. As we look to the future, it’s clear that the next generation of user verification will need to go far beyond what we currently understand. But what will these systems look like, and how will they adapt to ensure trust in an AI-driven era? The answers are uncertain, but the urgency to innovate has never been greater.

 

The evolution of Identity Verification – The time to shift to KY-AI?

As user verification systems struggle to keep pace with the rapid advances in AI, a question arises: Is it more practical to verify AI rather than humans? This concept, known as KY-AI (Know-Your-AI), envisions a plausible future where humans delegate most interactions to AI agents. In this reality, verifying the humanity of users becomes secondary to verifying the authenticity, source, and behaviour of the AI systems they rely on.

The push toward KY-AI stems from the assumption that in a near future, people will lean heavily on AI for tasks ranging from customer service to business negotiations, creative production, and even personal communication. If interactions are dominated by AI, understanding “who” or “what” is behind these systems will become crucial. KY-AI proposes a framework to tackle two major questions: Who created the AI? and How is the AI being used?

Verifying AI would require entirely new systems. A key component could involve auditing the companies behind AI models, ensuring transparency in their development and data handling. This might include certifications that verify ethical data sourcing, model training protocols, and adherence to privacy laws. Additionally, businesses deploying AI could be required to disclose their data management practices and demonstrate compliance with security and ethical standards. Another approach might involve embedding traceable identifiers into AI outputs, making it possible to track their origins and confirm authenticity. This could be paired with a registry system for AI models, where only verified AIs are authorized for specific tasks or industries.

KY-AI doesn’t propose to replace human verification entirely but instead acknowledges a future where understanding and managing AI is equally—if not more—critical. As reliance on AI grows, ensuring trust in these systems may become the foundation of all verification processes.

 

The RMA™ Badge — The only certification for AI-powered projects.

As the digital economy expands and AI becomes more and more of a cornerstone of innovation, the need for certifications and verification systems has never been more critical. These tokens of trust are not mere formalities, they are essential tools for educating stakeholders, protecting users, and securing emerging markets.

The RMA™ (Risk Management Authentication) Badge is a trailblazer in this space, offering a modular and dynamic framework tailored to the complexities of AI-powered projects. Unlike static certifications, the RMA™ Badge evaluates projects with a unique system that combines flexibility and granularity. Its modular approach allows different criteria—such as governance, security, and data management—to balance each other, providing an accurate and comprehensive judgment of a project’s reliability.

Designed to adapt to emerging technologies and evolving industries, the RMA™ Badge can assess the trustworthiness of AI-driven tools, platforms, and ecosystems in real-time. Whether it’s verifying an AI model’s data handling practices or the operational integrity of an AI company, the RMA™ Badge ensures no stone is left unturned. This adaptability makes it the gold standard for projects seeking to establish credibility in a rapidly shifting technological landscape.

 

Conclusion: From KYC to KY-AI — Is the future of identity verification already here?

The rapid advancements in AI and digital technologies are pushing traditional KYC systems to their limits. As deepfakes, synthetic identities, and AI-driven fraud become more sophisticated, the need for a revolutionary approach to identity verification is clear. Traditional methods, designed for a simpler era, are no longer sufficient to verify the authenticity of users in a world where machines increasingly act on their behalf.

KY-AI (Know-Your-AI) offers a forward-looking solution by shifting the focus from solely verifying individuals to understanding the AI systems that power interactions. Auditing AI models, validating data management practices, and embedding accountability into AI outputs are key steps in addressing these new challenges. KY-AI ensures that the “who” and “what” behind AI actions are transparent, secure, and trustworthy, aligning verification systems with the realities of a machine-augmented future.

Certifications like the RMA™ Badge provide the foundation needed to support this shift. With its dynamic and modular framework, the RMA™ Badge adapts to emerging technologies, offering a comprehensive and reliable evaluation of AI-powered projects. By embracing such tools, businesses, and regulators can build a secure and transparent digital economy where trust is not just restored but redefined for the age of AI.

 

About VaaSBlock

VaaSBlock is a global leader in blockchain credibility, setting the standard for trust and accountability. Through the RMA™ certification, VaaSBlock offers businesses a robust framework for proving their integrity and reliability to investors, regulators, and users worldwide. To learn more about the RMA™ badge and its impact on the Web3 space, visit vaasblock.com.

Website | LinkedIn |  X |  Threads | Facebook

 

⚭ This article has been co-created by VaaSBlock Consulting Team and our LLMs.