3 ways AI and Blockchain convergence will change the future of your business
The views expressed by the business participants are their own.
AI and blockchain are complementary technologies that have gained tremendous momentum in recent years as readers know. Just last year, the former found widespread use in every area of business: According to a study from UKG by the end of 2023, less than 78% of managers reported that their companies were using artificial intelligence. A further 71% consider AI to be very important to their businesses, and 62% thought they would not readily adopt such solutions.
Second, we have blockchain technology. As of 2018, 84% of C-suite members in a PwC study said they have a blockchain plan in progress, and the rapid rise of cryptocurrency over the years has shed more light on its potential.
Related: Meet the Visionary Shaping Entertainment with Blockchain
The benefits of AI and blockchain work hand in hand
As these two concepts become mainstream, business leaders are increasingly realizing their productivity potential in working together. In a recent presentation at the EY Global Blockchain 2024 Conference, for example, EY Global Innovation Chief Jeff Wong talked about the synergistic possibilities of blockchain’s ability to verify real identity, especially as the content of AI increases. He pointed out that technologies rarely advance on their own: Often, Wong said, they must combine with other new or existing ones to enable higher use and increased development.
Companies can use AI and blockchain together to transform business processes and influence digitization—among the payoffs are further cost reductions and transformations in the consumer experience of consuming online content and other digital interactions.
The question is, can all of this translate into everyday business practices?
Here are a few possibilities:
1. AI-powered predictive analytics
Artificial intelligence’s ability to look at past data and use it to predict future outcomes has gained incredible traction of late. However, that benefit is reduced if past data is unreliable. Blockchain reinforces AI-driven predictive analytics by ensuring that the data used in each algorithm is accurate, tamper-proof and transparent.
Companies can use blockchain to create a level of integrity and trust that is impossible in the less secure data set of AI models.
Related: The Complete Guide to Using Predictive Analytics in Your Business
2. Enhanced data security and strength
Blockchain’s ability to improve data integrity is unmatched. It publicly tracks all iterations of data, recording transactions in a decentralized and tamper-proof manner.
This significantly improves data quality but does not improve usability. This is where AI comes into the picture: It can perform progressive actions, including creation and production. But here again, the level of data is at the heart of the trust of each LLM (large language models) – something that the blockchain naturally raises.
Blockchain technology can create data that powers cleaner and more accurate AI results.
3. Complex smart contracts
Contracts make the business world run smoothly, but they can also hold things back if not handled properly. Blockchain makes it possible to store self-executing smart contracts on the chain when certain conditions are met. This reduces errors, eliminates the need for intermediaries and lowers costs.
AI takes the basic yet significant acceleration of blockchain contract execution and increases the complexity. LLM models and neural networks power AI algorithms that introduce a high degree of adaptability to the smart contract model. This gives them dynamic, decision-making quality that uses real-time data to adjust power.
Businesses can use AI to develop smart contract capabilities and reduce workload.
Related: Making the Difference with Adaptive Neural Networks
Investing in synergy
Technology is always evolving, but there are rarely times when multiple complementary technologies overlap in powerful ways. The intersection of blockchain reliability and the power of AI can lead to an explosion in business efficiency and power. The question is, are you and your company ready to explore that new frontier?
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