We are told by the Architect, that the Oracle was…

“an intuitive program designed to investigate certain aspects of the human psyche”

 

and that she

 

“stumbled upon a solution whereby nearly 99% of all test subjects accepted the program, as long as they were given a choice, even if they were only aware of the choice at a near unconscious level.”

We know she is a part of the system and so represents an aspect of society. Oracles are consulted for guidance. They tell prophecies and offer hope. This one offers candy and cookies… maybe to sweeten the bitter realities of life? Throughout the story, she talks about belief and offers the choice “to believe her or not”.

The Oracle symbolises religion… as Karl Marx put it… “Religion is the opiate of the masses.”

She is the feminine principle a way of keeping the right brain sated whilst the masculine principle takes control. Not everyone accepts her as truth, but enough do to allow it to happen.