Anyone with some interest in technology knows that, in recent years, emerging innovations have dramatically transformed everything from large industries to the lives of individuals. Two technologies that have recently attracted substantial attention are blockchain and artificial intelligence.
Many average consumers first learned of blockchain thanks to its role in facilitating cryptocurrencies like Bitcoin. AI, on the other hand, has long been seen as science-fiction by consumers. That’s changed, with AI being used for everything from suggesting products to analyzing job applications and data for Facebook advertising firms, manufacturing companies, and more.
As these technologies develop and improve, it’s becoming increasingly apparent that using them together could build upon their individual strengths. The following examples illustrate how. Don’t be surprised if you see businesses and organizations using AI and blockchain in these capacities sooner rather than later.
Making Financial Decisions
AI is useful for many reasons. Chief among them is its value as a decision-making tool. When a human needs to make a decision based on a large number of variables, they can leverage AI to boost their odds of making the right decision.
An example would be a financial advisor searching for strong investment opportunities. Numerous factors affect whether an investment is likely to yield substantial returns. With AI, a financial advisor could analyze those factors more efficiently than ever, helping them choose between different investments.
However, after investing in an asset, the transaction needs to be recorded, as does the information about ownership. Blockchain makes it easier to keep these records on a large scale.
That’s because blockchain is essentially a distributed ledger in which information is stored over a network. This makes it difficult to hack or tamper with, allowing for greater efficiency and transparency in record keeping. That’s very important in financial advising and asset management. As soon as an investment is made, the necessary transaction info is entered into the ledger where it can’t be edited.
Technology experts point out that blockchain makes enhanced data security possible. For businesses working hard to offer customers personalized experiences, this might be a decisive factor.
Businesses already use AI to learn about customer interests and behaviors, which helps them to offer a higher degree of personalization. That said, offering this type of experience tends to require collecting customers’ personal information. Consumers may be reluctant to use this type of service if they don’t feel their information is safe and sound with the provider.
That’s less likely to be an issue with blockchain. Businesses can use it in combination with AI to offer personalization without the risk of data breaches.
Individuals and organizations who apply AI to their work enjoy greater efficiency and productivity boosts as a result. That’s certainly a benefit. However, it also gives them an unfair advantage over smaller competitors.
Blockchain helps to level the playing field. By facilitating the existence of cryptocurrencies, it provides unbanked and underbanked people with greater access to financial products and services. As a result, more people can take advantage of developments in AI.
The benefits of different technologies often become more apparent, when used together with other solutions. As these examples demonstrate, AI and blockchain are no exceptions. While both of these technologies have already reshaped the world in small ways, their real impact might hit us when we start combining them.
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Content Specialist at Taktical