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3 Ways the Intersection of AI and Blockchain Will Change the Future of Your Business
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Artificial intelligence AND Blockchain they are complementary forms of technology which, as readers probably know, have gained surprising momentum in recent years. Over the past year, the former has found expansive application in the business landscape: according to a UKG survey By the end of 2023, no less than 78% of executives reported that their companies were using AI. An additional 71% considered AI a medium to high priority for their businesses, and 62% felt they were not adopting such solutions fast enough.
Secondly, we have blockchain technology. Already in 2018, 84% of C-suite members PwC said in a survey that it had a blockchain initiative underway, and the rapid rise of cryptocurrencies in the years since has shed further light on its potential.
Related: Meet the Visionary Shaping Entertainment Through Blockchain
The Benefits of AI and Blockchain Working Together
As these two concepts become more widespread, business leaders are increasingly recognizing their productive ability to work together. In a recent presentation At the EY Global Blockchain Summit 2024, for example, Jeff Wong, EY Global Chief Innovation Officer, addressed the synergistic possibilities of blockchain’s ability to certify original ownership, especially with the rise of AI-generated content. He emphasized that technologies rarely create a leap forward on their own: Usually, Wong said, they need to come together with other new or existing technologies to enable greater utility and a wave of development.
Companies can use AI and blockchain together to change business processes and influence digital transactions, with the benefits including further cost reduction and a transformation of consumer experiences in online content consumption and other digital interactions.
The question is: what could all this potentially translate into day-to-day business operations?
Here are some possibilities:
1. AI-based predictive analytics
The ability of AI to examine past data and use it to predict future outcomes has recently gained impressive utility. However, that utility diminishes if past data is unreliable. Blockchain strengthens AI analytics predictions by ensuring that the data used in each algorithm is accurate, untampered with, and transparent.
Businesses can use blockchain to create a level of integrity and trust that cannot be achieved with a less secure data set for AI models.
Related: A Complete Guide to Using Predictive Analytics in Your Business
2. Greater data security and capacity
Blockchain’s ability to improve data reliability is unparalleled. It publicly tracks every iteration of a piece of data, recording transactions in a decentralized and tamper-proof manner.
This greatly improves the quality of the data but does not increase its utility. This is where AI comes in: it can perform increasingly sophisticated actions, including creation and generation. But again, quality data integrity is at the heart of the reliability of any LLM (large language models), an aspect that blockchain naturally enhances.
Blockchain technology can create data that fuels cleaner, more accurate AI results.
3. Sophisticated Smart Contracts
Contracts make the world of business go round, but they can also slow things down when they are not managed efficiently. Blockchain allows you to store self-executing smart contracts on-chain when certain conditions are met. This reduces errors, eliminates the need for middlemen, and lowers costs.
AI takes the basic but vital acceleration of blockchain contract execution and increases its complexity. LLM models and the neural networks that power AI algorithms introduce a higher degree of adaptation to the smart contract model. This gives them a dynamic, decision-making quality that uses real-time data to fuel adjustments.
Businesses can use AI to improve the functionality of smart contracts and reduce workloads.
Related: Making a Difference with Adaptive Neural Networks
Investing in synergy
Technology is always advancing, but there are rare moments when complementary technologies overlap in powerful ways. The intersection of blockchain reliability and AI capability could lead to an explosion of business efficiency and dynamism. The question is: are you and your company ready to explore this new frontier?