Building the Architecture for Responsible AI with Paul Fehlinger of Project Liberty

Paul Fehlinger, Senior Director of Policy, Investment & Innovation at Project Liberty, a 500 million initiative building an AI and data economy that advances voice, choice and stakes, joins Georges Dyer on the Future of Finance podcast to unpack what responsible AI actually means for institutional capital markets. Drawing on his decade leading the Internet and Jurisdiction Policy Network and his current work convening LPs, GPs, policymakers, and entrepreneurs globally, Fehlinger brings a rare cross-sector perspective to one of the most consequential questions in finance today. AI is no longer a thematic investment trend but it’s a digital infrastructure, and its architecture will determine the structure of investable markets for decades. This conversation examines the governance gap that institutional investors must close before AI risk compounds across portfolios, and makes the case that safety and trust are not ESG overlays but core competitive variables in sourcing, due diligence, and long-term returns.   Key themes covered: - Why 75% of major LPs acknowledge systemic AI risk, yet only 19% report knowing how to respond, and what that gap means for fiduciary duty - The distinction between investing with AI and investing in AI, and why the data economy itself is emerging as an underappreciated investable vertical - How the automation-versus-augmentation question directly threatens the size of investable markets if left unaddressed - Why VC investors with 5+ years of experience increasingly believe strong responsible AI practices correlate with financial outperformance—and what the 83% and 91% survey figures actually signal - The case for protocol-level infrastructure as a scalable alternative to company-by-company AI due diligence, and why this needs to become a C-suite conversation, not a sustainability team assignment - For institutional investors, endowment leaders, asset managers, and anyone responsible for capital allocation in a world defined by AI, this episode is essential listening.   Resources: Responsible AI Due Diligence Toolkit for VCs —https://www.impactvc.co/ai, https://www.projectliberty.io/news/venture-capital-tools-for-responsible-and-impactful-investment-in-ai/ The ReframeVenture x ImpactVC x PLI white paper: https://www.projectliberty.io/news/pioneering-vc-survey-nine-in-ten-investors-see-financial-opportunity-in-a-responsible-ai-stack/ The ReframeVenture x ImpactVC x PLI Responsible and Impactful AI DD Toolkit: https://www.reframeventure.com/vcs/ai-dd StepStone: "Do No Harm — How GPs and LPs Can Use Responsible AI to Build Trust" - https://www.stepstonegroup.com/news-insights/do-no-harm-how-gps-and-lps-can-use-responsible-ai-to-build-trust/ "LPs Are Grappling with AI and Data Risks, but Incentives Are Misaligned" - https://www.newprivatemarkets.com/lps-are-grappling-with-ai-and-data-risks-but-incentives-are-misaligned/ The Structure of Scientific Revolutions, Thomas S. Kuhn (1962) - https://share.google/6BBq516A0e8sGkDep   General Timestamps: 00:00 Introduction & Overview of Project Liberty 03:10 AI's Systemic Risks: From Data Agency to Market Structure 08:30 What Responsible AI Actually Means for Investors 11:30 The Framework Proliferation Problem (and the Contrast with Climate) 13:30 The Fair Data Economy Task Force: Four Pillars of a Good AI Economy 15:00 Ecosystem Building in Action: LP and VC Engagement 18:30 VC Survey Results: What the 73%, 83%, and 91% Statistics Signal 21:00 Investing With AI vs. Investing In AI 25:00 The Data Economy as an Emerging Investable Vertical 31:30 The Due Diligence Problem: Auditing AI at Scale 36:30 The Aviation Analogy: Why Infrastructure-Level Trust Changes Everything 43:00 Bridging Risk Governance and Systemic Investment Approaches 49:00 What Comes Next: LP Tools, VC Guidance, and Entrepreneurial Centers of Gravity 53:30 Final Questions: C-Suite Priority, Book Recommendation, Vision for Finance   --   The Future of Finance podcast is produced by the Intentional Endowments Network, serving institutional investors working to align capital with long-term financial and systemic goals.