The collaboration of blockchain’s decentralised and transparent nature and the intelligence and automation of artificial intelligence (AI), are expected to bring in more efficient and secure systems.“By leveraging AI’s data analysis, pattern recognition, and automation capabilities, blockchain networks can be optimised for scalability, efficiency, and security. This synergy can be particularly beneficial in sectors such as supply chain management, finance, healthcare and digital identity verification, among others,” Shivam Thakral, CEO, BuyUcoin, a digital asset exchange, told FE Blockchain.
In cases such as supply chain management, it is believed AI can analyse vast amount of data and optimise it. This is in addition to identifying potential fraudulent activities, while blockchain sees the immutability and transparency of the recorded information. The global artificial intelligence market size was valued at $136.55 billion in 2022 and is expected to clock at a compound annual growth rate (CAGR) of 37.3% from 2023 to 2030, as per insights from Grand View Research, a market research platform.
Apart from these, the current trends of AI in blockchain could be the use of decentralised and user-based smart contracts in digital payment systems. The global smart contracts market size was valued at $684.3 million in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 82.2% from 2023 to 2030, as per insights from Grand View Research, a market research platform. “With AI in smart contracts, automated and self-executing agreements with predefined conditions can be expected. Eventually, it eliminates the need for a third party and streamlines transactions. This can lead to faster, safer and cost-effective payment processes, which might challenge traditional payment systems,” Om Malviya, president, Tezos India, a blockchain adoption platform, explained.
Governance in Banks: Driving Sustainable Growth and Stability – Speech delivered by Shri M K Jain, Deputy Governor, Reserve Bank of India at the Conference of Directors of Banks organised by the RBIhttps://t.co/Ft4Kv68X0T
— ReserveBankOfIndia (@RBI) May 31, 2023
Naysayers argue that the present legal and regulatory frameworks need to catch up to developments which surrounds AI and blockchain, to ensure the enforceability and validity of this joint venture. However, if proper regulatory initiatives are undertaken by the government, blockchain’s immutability and cryptographic techniques are expected to protect sensitive data while AI algorithms are expected to process it to extract insights. “It can be deployed as infrastructure while providing companies and individuals access to trained AI models. Moreover, the combined forces can provide data wrapping, record provenance, security against tampering and improve data quality,” Subhasis Bandyopadhyay, VP-DBS domain, IG head -BFSI, Happiest Minds Technologies, information technology services organisation, concluded.
Follow us on Twitter, Facebook, LinkedIn