The artificial intelligence (AI) market seems to be the key to drive growth of digital assets, and non-fungible tokens (NFTs) are expected to benefit from the same. From what it’s understood, AI-based NFTs carry potential to ensure long-term development of metaverse and decentralised play-to-earn (P2E) economies.
According to Sensorium, a metaverse and Web3.0 developer, AI-based NFTs are implanted with a Generative Pre-Trained Transformer 3 (GPT 3) language model in connection to its smart contract. The platform also stated that this kind of NFTs can provide features such as interactivity, animation, among others. “I believe AI-based NFTs are not only interactive but also create experiences. We can even program these assets by giving commands and can generate different outputs each time. In short, AI can enhance the capabilities of NFTs,” Toshendra Sharma, founder and CEO, NFTICALLY, a business-to-business (B2B) software-as-a-service (SaaS), told FE Blockchain.
Insights from market study has shown that AI-based NFTs can enable formation of a decentralised digital economy. Plain Concepts, a software company, has stated that AI-based NFTs can provide users with unique and personalised experiences. Furthermore, this category of digital assets can ensure creation of digital communities, managing avatars’ intellectual rights and democratising reach for new digital applications. As stated by Binance, a cryptocurrency exchange, AI-based NFTs can be beneficial for understanding databases around human-created artwork. Experts suggest that AI carries potential to assure a better functioning of an NFT marketplace through factors such as automatic adjustment of prices and spot marketplace trends.
“The combination of AI and NFTs has potential to drive innovation and growth in digital and decentralised economies, creating new opportunities for creators, collectors, and investors alike. However, it might take time for this to become mainstream. It is likely that we will see companies and organisations explore and utilise AI-based NFTs for business purposes,” Edul Patel, co-founder and CEO, Mudrex, a crypto-investing platform, mentioned.
Reportedly, companies such as Alethea AI, XANA, Terrain.art, among others, have explored use cases for AI-based NFTs. For example, Alethea AI clocked $16 million to establish a framework for AI-based NFTs. Moreover, future research predicts that AI-based NFTs can shape itself into a monetisation stream for content creators and investors. Data sourced from Start With NFTs, a NFT-oriented platform, showed that AI-based NFTs are likely to play an important role in entertainment and digital art industries, which will add to their popularity.
“I believe manifestations and projects will start getting refined and systematic, giving rise only to projects that have a practical application for the incorporation of AI into the NFT space. We expect to see early adopters because they would have done their research and worked on the practicality of AI in their NFT ecosystem,” Kameshwaran Elangovan, co-founder and COO, GuardianLink, a decentralised protocol, concluded.