By Saket Newaskar
Imagine customers entering a retail store and receiving an unexpected notification from a brand offering a considerable discount. However, there is uncertainty as to whether or not this offer is genuine, underscoring the necessity of digital trust in businesses. When companies establish trust, customers are more inclined to participate in offers such as digital coupons without concern for scams or deception.
In this modern interconnected world, digital trust has become essential for business success. Here is where blockchain and artificial intelligence (AI) come in to simplify the business process. Combining AI and blockchain creates an influential duo that enhances brand communication and security. Brands must prioritise data integrity and privacy by implementing blockchain-integrated and AI-infused solutions. This approach safeguards sensitive information and improves the transparency and trustworthiness of interactions between parties.
Brands must now adopt these technologies to maintain authentic connections with customers in an increasingly digital landscape. According to a MarketsandMarkets report, the blockchain market is projected to reach $703 million and grow at a compound annual growth rate of 25.3% by 2025.
Increasing trust through the integration of AI and blockchain
The immutable, decentralised ledger system at the core of blockchain technology ensures that no entity can modify documented data. This is vital in an era in which 80% of clients consider trust in brands an essential factor in their purchasing decisions (Harvard Business Review). By utilising blockchain as a communication channel, brands can ensure the authenticity of their customer interactions by maintaining an auditable trail that can be accessed at any point during the purchasing process.
Artificial intelligence (AI) improves the safety of the blockchain by enhancing data administration efficiency, reducing the time and effort required to secure information, and rapidly identifying patterns or anomalies in real-time. Imagine AI scanning brand communications before distributing them to consumers to identify potential copy or misinformation. This capability alone could save companies billions in reputation management expenditures in industries such as finance and healthcare, where trust is paramount.
AI-powered algorithms can rapidly process and verify large volumes of data on a blockchain network, thereby establishing an environment in which brands can confidently convey messages and be secure in the knowledge that their target consumers trust them. This includes verifying transactions or brand communications.
Statistics regarding the influence of blockchain technology
The potential for blockchains to revolutionise identity verification has already begun to manifest in various sectors. Per Markets and Markets report, the global blockchain identity management market size is expected to experience a significant increase from USD 1.3 billion in 2023 to USD 35.1 billion by 2028 due to the growing demand for secure decentralised identity systems that exploit vulnerabilities associated with traditional centralised models. Blockchain identity verification systems also assist brands in authenticating their messaging by limiting access to verified users.
The future horizon
Blockchain and AI will further transform how brands interact with their audiences in the future. Combining blockchain’s incorruptible records and AI’s capacity to learn and predict consumer behaviours will provide consumers with a transparent, seamless experience free from data misuse or fraud. This is especially true because smart contracts incorporating AI are already establishing new frontiers of efficiency and trust across various industries.
Blockchain and AI technologies are no longer futuristic concepts; businesses must integrate both technologies to thrive in the digital age.
In conclusion
Blockchain and AI technologies are revolutionising how brands build trust in the digital era. From improving data security to streamlining identity verification processes, they ensure brand communications are verifiable and tamper-proof – essential in an age where transparency is everything. Businesses seek fraud-resistant operations, and consumers demand greater transparency, marking their place as integral solutions in an age where trust is everything.
The author is director and head of transformation, Expleo. Views expressed in this article are personal and are not necessarily those of financialexpress.com