Being a decentralized network, if a person would like to offer such algorithms to operate sex bots and what not - he would be able to do so. I agree, it’s not a pleasant use case but the fact remains that the porn industry is quite often the earliest adopter of latest technological advances.
I talked about such usage of the network to some extent in my post here:What would be the low lying fruits?
Algorithms to operate sex bots isn’t going to be the end of it, I’m afraid. We’re looking at the possibility of a lot of AI being used in a lot of ways - some unpleasant and some down right repugnant.
I think the possibility of having such algorithms being available on SingularityNet is a fact that would have to be accepted, in order for a decentralized marketplace of AI to exist, the good comes with the bad.