Davos: Could New Interest in AI Help Boost Blockchain Tech?

AI has taken center stage at World Economic Forum in Davos. Sudden interest in AI could help boost blockchain tech.

A group of people gathering to look closely at a digital brain.
  • AI is capturing the imagination of leaders at WEF2023, with the impressive performance of OpenAI
  • WEF experts believe that AI and blockchain technologies are compatible and could synergize. 
  • AI has already found applications in the crypto industry.

The yearly World Economic Forum in Davos, Switzerland, brings together some of the most influential people in business and technology. This year, the focus is on the potential of artificial intelligence (AI).

ChatGPT‘s impressive performance and the crypto market crash have taken the spotlight away from blockchain tech at the event.

However, World Economic Forum experts and major institutions believe AI and blockchain could synergize well. If true, the sudden spike of interest in AI could help boost interest in blockchain as well.

WEF23 is All About AI

The 23rd edition of the WEF is largely focusing on AI and its potential applications. This is no surprise, as Open.AI recently released its ChatGPT language model. The model, which produces dialogue that’s often impossible to distinguish from human responses, has been available to the public since November 2022.

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Moreover, ChatGPT has a large volume of information and can give sensible answers to questions about a wide range of topics.

OpenAI’s impressive tool ChatGPT has captured the imagination of the CEOs, venture capitalists, and other experts in attendance. They are convinced that AI has the potential to be a game-changer in technology.

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The development of AI could help businesses reduce costs, provide better service, and improve customer experience. Moreover, AI-driven automation could help boost productivity in sectors, particularly white-collar work.

At the same time, there is a notable drop in the visibility of crypto firms at the event. The crypto market crash has impacted companies’ marketing efforts in the space, and blockchain initiatives have taken a back seat.

However, the sudden spike in interest in AI may boost blockchain as well. Notably, the World Economic Forum sees both artificial intelligence and blockchain as technologies that could shape the future.

WEF Experts Highlight Synergies Between Blockchain and AI

Several WEF experts think these two technologies are complementary and can boost each other. Combining AI with blockchain tech could lead to important synergies and create a powerful combination in technology.

For instance, one expert highlighted the potential of blockchain tech and AI in marine conservation.

"Technologies like blockchain - the distributed ledger technology that underpins the bitcoin currency - could help enforce the new treaty by tracking fishing on the high seas and identifying illegal behavior," said Dominic Waughray, head of WEF Center for Global Public Goods. 

At the same time, AI could help reduce the cost of monitoring the seas for illegal activity.

Blockchain tech could also help tackle some of the problems that come with the exponential development of AI. One of these is deepfakes, or videos showing real people that are completely artificially generated.

As deepfakes improve, it will be even harder to distinguish between them and genuine videos. This is already causing real problems. For example, scammers are using deepfakes of Elon Musk to promote fake giveaways.

Blockchain could provide the transparency needed to identify deepfakes, and help ensure that AI-generated media won’t be misused. 

AI Applications in Crypto-Trading, Decentralized AI

AI has already impacted the crypto space and found some practical applications. For example, some traders are using ChatGPT to write AI trading bots to make more accurate predictions of the crypto markets.

AI tools can also scan the market for potential risks and opportunities. This could help investors act on important market shifts and make more profitable trades. On the other hand, hackers have already used ChatGPT to create malware.

Others are exploring the potential of building decentralized AI networks using blockchain technology. So far, AI systems have been in the hands of Big Tech firms. Microsoft is planning to invest $10 billion in OpenAI.

Decentralized AI networks could be used to prevent big tech firms from having too much power over AI. Using blockchain technology to distribute control, these projects could create more trust in AI.

On the Flipside

  • Decentralized AI comes with a unique set of risks as well. Without centralized control, it is harder to ensure malicious actors cannot use this powerful technology.

Why You Should Care

AI and blockchain could help shape the future of technology. We will likely see more projects exploring the synergy between these two expanding technologies.

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
David Marsanic

David Marsanic is a journalist for DailyCoin who covers the intersection of crypto, traditional finance, and government. He focuses on institutionalized crypto entities like major cryptocurrency exchanges and Solana, breaking down complex topics into easy-to-understand writing. David's prior experience as a business journalist at various crypto and traditional news sites has enabled him to maintain a critical approach to news while adhering to high journalistic integrity standards.