Over the last few years, AI has begun to dominate conversations as enterprises grapple with how best to integrate the technology. However, it has also opened up new discussions about how existing technologies such as blockchain can best take advantage of these tools, says Stefania Barbaglio (Founder of Cassiopeia and FinancialFox).
Speaking on the sidelines of the recent London Blockchain Conference, Barbaglio said that this includes transparency, data provenance and the ability to build models which avoid bias in AI systems. ‘We are still very early, but AI can help a lot in security, identifying congestions in the blockchain system and making the overall system more efficient. These two technologies are coming together and I am very excited about the convergence of them.’
A convergence of new technologies
While this meeting of the two technologies is very exciting, it is still very early days which means that the industries are still relatively siloed and there is very little cross-pollination of ideas, said Barbaglio.
So historically you are seeing a lot of Venture Capitalists (VCs) investing in AI or crypto. What is happening right now is that VCs are starting to actually take positions at the convergence of AI and blockchain.
‘One aspect which I think is very interesting is AI crypto tokens. This raises questions about how we can create incentive mechanisms to build better large language learning models. Where you are a node or player that can input data and you are incentivised to add (good) data to the model and rewarded for it.’
However, Barbaglio also cautioned that the sector is likely to face challenges. One of the biggest obstacles facing this convergence is clear regulation, she said. ‘We still don’t have clear regulations around AI and blockchain regulation is coming along but is still quite fragmented.’
Another factor to consider is infrastructure and power draw. Barbaglio noted that blockchain technology and LLMs will require significant infrastructure developments and will lead to increased power usage, meaning further advancements around renewable energies will be necessary.
Education is key
Outside of these key issues, Barbaglio said that by far the biggest factor is educating the right people about the possibilities of these emerging technologies. ‘What the government can do to help with the development of blockchain and AI space is education. Government and policymakers still need to be educated – and the best way to do this is to try them.’
‘London has always been the financial hub so why are we falling behind blockchain and AI? It’s because we are not setting up the right environment to attract talent to allow these companies and set up their offices in the UK. If we are hostile then the talent is going somewhere else.’
Blockchain – The missing link
Enterprises have been digitising for some 30 years — but artificial intelligence (AI) takes transformation to the next level. It is no wonder why: AI enables businesses to reach their potential at last. With such rapid and dramatic change comes uncertainty, however.
How can you be sure that your digital technologies are working together as they should? How do you know that the results provided are based on reliable data and that your data and devices are tamper-free? The answer, for a growing number of enterprises: blockchain.
This was one of the key findings of a new report by the BSV Association focusing on the role of blockchain in safeguarding data and streamlining transactions. The report highlights how blockchain technology opens a window on trust.
Using it, enterprises can see clearly where data originates, where it has travelled, and how it has changed along the way. Blockchain’s transparent, secure, and immutable digital ledger establishes reliability and confidence that a business’s devices and data are working as they should.
