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VERSES AI May Offer Generative Artificial Intelligence Regulation Solution

The VERSES AI CEO gives his thoughts on the AI regulatory landscape and how their standards could offer a Generative AI regulatory solution.

VERSES AI May Offer Generative Artificial Regulation Solution

Published: June 2, 2023 | Published By: Real Creative Agency

How To Solve Generative AI Regulation Problem

We recently interviewed the CEO of VERSES AI to get his thoughts on the generative AI regulatory landscape and how the standards they’re helping develop, can play an important role.

This article discusses:

  • A solution for generative AI regulation
  • A Cheaper, FASTER AI solution
  • A method that enables the owner of copyrighted content, to control who has permission to it.

There were 3 major events last week that are TRANSFORMING the artificial intelligence space.

The EU issued the largest (GDPR) General Data Protection Regulation fine, ($1.2B) on Meta, showing they’re cracking down ahead of AI regulation and the EU AI Act, which addresses this matter moving forward.

To that end, Sam Altman (OpenAi CEO) recently testified in Congress saying there needs to be more AI regulation, EXCEPT for transparency and audibility.


Because his Generative AI ChatGPT CANNOT provide transparency and audibility.

While Altman has said he welcomes regulation to rein in generative AI, the company’s refusal to be more transparent about the dataset used to train ChatGPT, and shutting down requests to up access for third party apps to use its API suggest OpenAI, isn’t as warm to regulation as it claims. (Source)

On the flip side of this major shortcoming, VERSES AI announced a patent filing that could enable auditable and explainable AI, AND allow owners of copyrighted content to maintain control/permission of their work

Let that sink in for just a moment.

In the VERSES AI press release, we highlighted two sentences that could make VRSSF the BEST artificial intelligence stock under $10.

From the company’s technology breakthrough and artificial intelligence patent press release:

HSML (Hyperspace Modeling Language), an explicit knowledge modeling language currently being developed into the P2874 IEEE standard that enables the translation of any multimodal data set (text, image, audio, sensor data) into a generative “world” model upon which software agents can reason and act.

the potential regulatory compliance of Large Language Models (LLMs) and other foundational models for text, audio, video, IoT devices, cameras, autonomous vehicles and robotics.


The EU AI Act could make VERSES AI peerless in the artificial industry.

Europeans are nuts about privacy. 

Remember, THEY are the first ones to crack down on website privacy issues.

Because of that fact, now you see EVERY website with that annoying “Accept cookies” popup when trying to access their sites.

Again, they showed just how serious they are about privacy and upcoming AI issues by fining Meta $1.2B based on GDPR violations.

On the heels of that fine, the EU is about to pass an AI bill into law that is part of GDPR, which makes the current cookie fines seem minuscule in comparison to this first one!

More on that in just a bit.

The AI Act is a proposed European law on artificial intelligence (AI) – the first law on AI by a major regulator anywhere. Like the EU’s General Data Protection Regulation (GDPR) in 2018, the EU AI Act could become a global standard.

Key to note, Article 16C says “People deserve the explanation for decisions from ai systems, ai systems need to have interoperability built into as a fundamental concept”

If anyone is adversely affected, they have the right to ask the deployer (OpenAi, Google or Meta) and ask for an answer.

Here’s the problem…

ChatGPT, Google’s Bard, Dall-E etc… ALL the major AI platforms rely on GENERATIVE AI models… which in turn are UNAUDITABLE, UNEXPLAINABLE and OPAQUE!

The current way data is modeled in AI, simply CANNOT be trusted.  It is  unauditable and unexplainable… it’s certainly NOT transparent.

What is BETTER than ChatGPT Generative Artificial Intelligence?

Let’s take a deeper look here. 

VERSES AI shows how the AI model operates and the types of data used to train it.

Explainability is the capacity to express why an AI system reached a particular decision, recommendation or prediction. Developing this capability requires understanding how the AI model operates and the types of data used to train it. 

Now, let’s revisit our miniscule reference earlier.

The EU is seeking to implement transparency measures in so-called general purpose AI and the fines are 2-6% of a company’s global revenue PER incident.

Yes that’s correct, simply a show-stopper for those who cannot comply!

So, instead of a $1.2B fine, if Meta’s AI solution doesn’t comply, it could face a fine of roughly $7.2B.  Correspondingly, Google could see fines as high as $15B PER INCIDENT.

Anything built on OpenAI, Google, Facebook and Amazon’s generative AI models could be subject to these fines.  Not to mention here, Github, DALL-E etc…

HINT: When you read about the latest AI startup, look for “generative ai” in the company’s description


    How do generative ai providers solve this regulatory problem?

    If generative AI cannot be audited OR explained, what to do? 

    Well, VERSES AI’s CEO Gabriel René answers our questions in this regard and others:

    1. Is there a solution/retrofit that could make generative ai explainable/auditable/transparent?

    Yes – in theory HSML graphs generated by KOSM or a KOSM Agent (GIA) could act as an intermediary guidance system for LLMs (Large Language Models) to verify inputs and outputs for factualness and explainability. 

    The company hasn’t tested this yet but expects to this summer.

    2. Can any/all data that ChatGPT uses be formatted into HSML?

    In theory, yes. However, no need to model 1T parameters of the neural net if you can add Agent based guidance systems on top as addressed above.

    3. If EU law gets passed, what does ChatGPT do in your opinion?

    • Promises to meet it before the grace period ends and spends $1B trying to make it explainable “enough” or lobby to reduce the definition of explainable to mean, “offer an explanation in English rather than the computational logic.”
    • OR – adopt the standards.

    If the EU endorses HSML, IT could become the gold standard for AI

    If you translate data into HSML, the lineage when processed by AI, CAN be explained.  Couple this, with also offering reliability, accuracy AND compliance with regulations!


    KOSM translates structured and unstructured data into a graph that explicitly describes the relationship and dependencies between data… so that it can be understood, explained, and audited… simply the holy grail not just for AI, but for all digital systems.


      VERSES AI has a grant from the European Commission.

      With that in mind, VERSES is completing a grant from the European Commission to develop tools to express EU policies in a machine readable/executable format to enable autonomous drone regulation.

      Furthermore, you can control access to all or any portion of the data in HSML, and for any system that operates on it.

      Critical to note here, It could describe the rules or terms for use, and if the AI law deems that the Spatial Web Standards are the basis of compliance.

       If that is the case then YES, it makes every (legal) AI Model that uses data, forced to operate on the standards!


      artificial intelligence operating system protocol hsml

      VERSES AI’s HSML is a language for modeling data

      HSML is language for modeling data, including regulations and policies, which paves the way for automatic compliance by autonomous systems.

      VERSES AI’s KOSM, IS a way that owners of existing content can format data into HSML.

      KOSM is a data processing engine (pipeline) that converts that data and makes it useful for humans and AI, along with ensuring the data it uses and the devices it acts through, are also interoperable, explainable AND governable.

      In addition, it also enables owners of copyrighted content to control who has permission to it.

      For example, just like Google Drive, you can control what permissions a user has with data (owner, editor, viewer and restricted).

      ALL of the information in the world that we want to be interoperable, explainable and governable, needs to be formatted into HSML.

      Well, just how is that done?

      Consider the following:  it’s a little like asking “How does one get on the world wide web – in 1993 – convert your documents into HTML and use HTTP. 

      How does one do that?  In the beginning, get a programmer (code it).  Later, use WordPress (low code it), or today use Squarespace (no code it).

      The company is working on an application that can format any website or application into HSML


        How should investors look at VRSSF?

        VERSES AI is a VC startup on the public market in the purest form.  

        Retail investors have never been able to get 1000 X returns like VCs.  Finally, here’s the possibility to do just that in our opinion, but you have to think like a VC.

        Bill Gates said there is a 50-50 chance that this future AI winner will be either a startup or a tech giant (we think he might know about the drone project). 

        Whoever builds this wins.

        It will be the future of computing… AND will come from either a startup or a big tech company.

        Very important for readers and investors to consider here, the big picture with this company is NOT immediate revenue, but offering THE standards for AI!

        Think Amazon’s revenue story.

        Anyone focusing on revenue with this company is missing the big picture.

        VERSES’ is the ONLY approach that gets smarter every day… other AI models don’t.

        In fact, it’s the ONLY one that is based on standards, and answers the explainability issues in Europe…

        The AI Act is a proposed European law on artificial intelligence (AI) – the first law on AI by a major regulator anywhere. Like the EU’s General Data Protection Regulation (GDPR) in 2018, the EU AI Act could become a global standard.

        After all, the co-founders of VERSES AI Gabriel Rene and Dan Mapes, did write the book on a safe and transparent AI, titled The Spatial Web.


        Spatial Web Book
        Bottom Line

        Our digital marketing agency believes that creative content is better than spending money on ads.


        This information is for educational purposes only, it is NOT investment advice. It is published as an information service for highly speculative investors, and it includes opinions on buying, selling, and holding various stocks and other securities. VERSES AI Inc is an extremely high-risk investment, and it is HIGHLY LIKELY you can LOSE YOUR ENTIRE INVESTMENT. Investors should consult with their financial advisor BEFORE making ANY investment.

        Prospective investors should carefully consider and evaluate all risks and uncertainties involved in an investment in this Company, including risks related to the Company’s limited operating history, the Company’s need for additional funding, the Company’s ability to successfully implement its growth strategy, conflicts of interest, the uncertainty of the use of available funds, the Company’s failure to manage growth, and reliance on strategic partnerships.

        The information provided is obtained from sources believed to be reliable but is not guaranteed for accuracy or completeness. Any persons who buy, sell, or hold securities should do so with caution and consult with a broker or investment adviser before doing so.

        Any discussions and pages may contain forward-looking statements that involve risks and uncertainties. A company’s results could differ materially from those in forward-looking statements or announcements.

        All material is for informational purposes only and should not be construed as an offer or solicitation of an offer to buy or sell securities.

        At various times, we may own, buy or sell the securities discussed for investment or trading purposes. We (publishers, owners, and agents) are not liable for any losses or damages, monetary or otherwise, that result from the content shared.

        Scott Shaffer is compensated by VERSES AI Inc (the “Company”) for publicizing information about the Company and its products.

        The payment was made through both (i) a $50,000 signing bonus from the Company and (ii) the payment of cash compensation in the amount of $7500.00 per month for a period of 6 months starting February 2023.

        As of April 14, 2023,  the Company had (i) issued $50,000 and (ii) paid an aggregate of $15,000.00  in cash compensation for such services by Scott Shaffer.  On April 17, 2023, The Company extended the contract for an additional 6 months and cash compensation was increased to $10,000 per month. Additional cash payments may have accrued since then.

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