DAO-enabled decentralized physical AI: A new paradigm for human-machine collaboration

Physical AI is experiencing rapid growth with frontier foundation models increasing its capabilities across general environments. Physical AI tasks are characterized by inference properties that are markedly different from digital AI. They consist of multiple rounds of inference and action execution, generating a chunk of actions in each inference round, and asynchronously interleaving inference and execution. This makes existing digital AI serving systems unsuited for physical AI; a shortcoming that is critical for enabling their wide adoption, considering their size and the scale of the robot fleets they have to serve. To fill this gap, we design Kairos, the first multi-robot serving system that makes the generate-execute loop a first-class citizen, with active involvement in the execution phase. Across a wide range of physical AI models and robots, Kairos reduces the average end-to-end task latency by 31.8--66.5% over state-of-the-art digital AI serving practices, with gains scaling with the robot fleet size.

Every major framework for governing artificial intelligence presupposes an identifiable entity -- a developer, deployer, or operator -- who can be held responsible and compelled to comply. Decentralized AI (DeAI) dissolves this presupposition. We analyze DeAI as a six-layer decentralizing stack -- model, training, compute, harness, identity, and ownership -- and show how partial decentralization across layers compounds into what we call the \emph{governance vacuum}: a condition in which AI systems are consequential enough to require governance but lack the properties that existing frameworks presuppose in their targets. This vacuum takes two analytically distinct forms: an \emph{accountability gap}, where no addressable principal can be identified, and an \emph{incapacitation gap}, where even an identified principal cannot alter the running system. We demonstrate that these failures are not merely jurisdictional but defeat every presupposition of governance through normative address -- the communication of rules to a comprehending, responsive agent. Drawing on Lessig's modalities of regulation and Searle's distinction between regulative and constitutive rules, we argue for a shift in the locus of governance from policy to protocol, from normative address to architectural constraint. Protocol-based constitutive governance does not address the agents operating within a system but shapes the substrate that determines what kinds of actions are possible within it. We identify four ethical conditions -- legitimacy, contestability, transparency, and non-domination -- that such governance must satisfy to avoid degenerating into unaccountable technocratic power, and we argue that the central political challenge of governing AI in a decentralized world is reconstructing forms of democratic authorization for architectural choices that persist after the ordinary chain of policy has broken down.

Physical AI refers to AI systems that understand, reason about, and act in accordance with the physical world and its underlying laws, dynamics, and constraints. Unlike conventional AI systems, physical AI interacts continuously with uncertain physical environments, and its actions produce consequences that are physically irreversible. As existing trustworthy AI frameworks have been developed primarily for digital AI systems, they do not fully capture the distinctive challenges of physical AI, such as physical safety, cyber-physical security, and physical manufacturing process. To address this gap, we present a survey of trustworthy physical AI principles. First, we characterize the core capabilities and challenges of physical AI. Second, we examine the role of physics in AI. Third, we trace the end-to-end physical AI life cycle across five core stages and introduce Trustworthy Physical AI Operationalization (T-PAIO). Fourth, we develop the Trustworthy Physical AI (T-PAI) framework, a theoretical framework that organizes key trustworthiness principles and provides a foundation for governing trustworthy physical AI systems.