A few years ago, Blockchain and AI were just buzzwords that had little to no impact on how the world works. However, that has now changed. Blockchain and Artificial intelligence have grown to become some of the most important technologies powering innovation in numerous industries.
From finance, healthcare, supply chain management, and many others, many innovations in these sectors rely heavily on blockchain and AI technologies. Wherever they are implemented, they have proven to be a powerful pair.
What are AI and Blockchain?
The blockchain is a decentralized network of computers that record and store data in a chronological manner on an immutable and transparent ledger. AI technology refers to machines designed to perform complex, and logical tasks that would traditionally require human intervention. The difference between humans and AI is that AI can perform the same tasks millions of times faster than any human will ever accomplish.
How Blockchain and AI Complement Each Other?
There are numerous applications where combining blockchain and AI technology is the perfect solution. Some of these are:
Enhancing the Reliability of Data
AI, like all other programs, requires input to provide results. If it receives incorrect data, it will be harder for it to make accurate predictions. That is where blockchain technology comes in. The use of blockchain ensures that immutable records of data are created. These records can act as a great source of authentic data. With reliable data, AI can better come up with useful results.
One application for this is in the supply chain. In the current world, more people want to be sure that the products they consume are ethically sourced. By using the blockchain to verify the source of products, it helps to create a transparent supply chain. The same data can be fed into an AI program to help identify inefficiencies in the supply chain, thus helping to cut costs.
Increased Automation
Another great use case for AI and blockchain is increased automation. This is made possible via something called smart contracts, which are secured via a blockchain. These smart contracts are self-executing code based on set parameters. Doing so could help to increase efficiency in numerous industries, including the financial sector.
Another example would be in supply chains. Smart contracts can be used to execute commands such as recalls for expired products, with the aid of AI. It could also be used to recommend stock purchases, which would ensure that the supply chain is always running efficiently.
The Ability to Verify Data Created Via Machine Learning
Another useful application for blockchain and AI is the ability to make AI more understandable. For instance, in the EU, the General Data Protection Regulation (GDPR) requires that all decisions made using machine learning must be explainable.
Connecting a machine learning program to a decentralized, immutable ledger, ensures that specific instances of data can be recorded. The result is that the processes used by AI become more coherent. Doing so can also help researchers to understand the justification for any results produced by AI. Not only will these ensure that AI researchers are compliant with the law, but it is also useful in understanding how AI works and where improvements can be made.
Another benefit of this is that it will help to make AI more trustworthy. As AI develops and advances, it can sometimes become difficult for scientists to verify how the AI came to its conclusions. Besides that, it can be harder to determine whether or not someone tampered with the data. The reason for this is that the amount of data fed into an AI program is simply too much for a human to go through in a lifetime. Using AI combined with the blockchain provides an immutable method of ensuring data authenticity. As a result, output from AI becomes more trustworthy.
It Could Democratize the Data Marketplace
In the current setup of the internet, the most valuable resource is user-generated data. This data is often sold to major companies by other private companies, and it is quite valuable. Some of the biggest companies in the world make most of their money from selling user data. By bringing the blockchain into the data industry, it could help to democratize the data industry.
By storing data on the blockchain, it would give users absolute rights over their data. Users of the internet could then have a right to decide how their data is monetized.
In short, people could start receiving compensation for their data if it is secured using the blockchain. This would go a long way into creating a democratized data marketplace, where small AI companies can flourish. In the current system, buying data to feed into AI is prohibitive for most small and medium-sized companies. Consequently, most of them usually fold or sell to bigger companies.
A data marketplace secured using the blockchain could ensure that small AI companies have access to the valuable data they need to grow. In short, it would help to end the hold that giant tech companies have on the internet.
Summary
The merger of blockchain and AI technologies is still a relatively unexplored area. However, serious research is ongoing in this field and various solutions have already been developed. There is a high possibility it will become mainstream in fields such as finance, supply chain management, and the insurance sector.