10 Ways How the Combination of AI and Blockchain Will Benefit the Businesses in the Long Run
Compared to traditional relational databases, blockchain has advantages of decentralisation and immutability. Therefore, some experts say that blockchain might never replace data warehouses in a centralised setup but remain an auxiliary option for large-scale enterprises.
Still, the tectonic shift in business processes due to recent advancements in AI and NLP means that AI will need even more computing resources than before with the development of new techniques like deep convolutional models etc.
A decentralised network like blockchain can offer a solution to the aforementioned problem. For instance, blockchain can offload complex tasks such as machine vision from the main computing system to its network.
And it doesn’t end there.
Consider this; AI models need massive datasets to train using deep learning models and torrents of transactional data to get better at making predictions. A decentralised network with use cases offering financial incentives is ideal for constantly updating datasets for AI training, resulting in better ML models.
So, as companies look for ways to harness the power of AI, blockchain technology could play a significant role in their strategies.
That said, this article emphasizes the combination of AI and Blockchain in the context of how this assimilation can benefit businesses in the long run. Read along to know more.
The Benefits of the Combination of AI and Blockchain to Businesses
1. Improved Data Security
The lack of trust, especially in the digital world, is one of the major obstacles to AI adoption. However, with the combination of AI and blockchain technology, businesses can use a decentralized network for better security of data and safer interactions between peers. Unlike centralized databases prone to cyber-attacks with hackers having a single point to target, blockchain’s immutable ledger can help businesses avoid identity theft by third parties who have access to sensitive information.
2. Lowered Cost of AI
In order to make strides in AI development, businesses must have large amounts of data to train a model. However, in a centralized database setup with a high cost of maintaining the data, it’s not economically viable. Blockchain provides decentralization with better security and cheaper transaction costs through the use of smart contracts. With this combination, companies can design AI models using less data, therefore cutting costs and making it easier for businesses to invest in AI development.
3. Improved AI Productivity
Due to the complexity of the task, it can take a long time for AI to become proficient at any job. However, progressive businesses have already made use of blockchain technology in a manner that is more practical. For instance, IBM combines blockchain along with Watson IoT Platform to facilitate smart contracts for data sharing and machine-to-machine transactions. Such methods can not only optimize the entire workflow but also boost the productivity of the employed AI model.
4. Better Accuracy in Predictions
The accuracy of predictions by AI models depends on the amount of training data available. Businesses can only invest in AI when they have a good understanding of how to use it for the betterment of their organization. With decentralized data and more intelligent systems, businesses can reduce their data requirements and improve the accuracy of prediction models as well as third-party predictions.
5. Lowered Energy Costs & Consumption
As reported by McKinsey, with the variety of different algorithms involved in AI workloads, it can take a great deal of energy for enterprise systems to run. Therefore, reducing energy consumption and the associated cost is readily prioritized by organizations across the world. That said, decentralizing data and machine learning models can significantly lower energy costs and swiftly perform business operations while consuming less power.
6. Better Integration with Legacy Systems
Some of the most innovative and successful companies have an existing legacy system that lacks support for new technologies. Consequently, they prevent themselves from adopting blockchain or AI technologies that they think won’t work with their current infrastructure. However, with the combination of AI and blockchain, enterprises can use virtual assistants to integrate their legacy systems with blockchain networks for better security and more efficient operations.
7. Improved Safety in Data Sharing
One hindrance to making progress with AI is the lack of trust between organisations. Blockchain’s improved transparency of transactions and hierarchal system means more trust in data sharing among peers, making it easier for companies to share the information. This can, in turn, improve AI development by using data from other organisations for training purposes.
8. Better Data Management
By storing data on decentralized networks like blockchain, it becomes more secure and easier to manage due to the reduced complexity of handling several data sources. For example, Walmart has already used this combination with IBM to reduce the time spent on manual audits for food safety and increase the time required for food safety experts to provide recommendations.
9. Better Adoption of Specific Use Cases
A combination of AI and blockchain can be a powerful tool for specific use cases like supply chain and identity management. The decentralized nature of blockchain means that the network can become more trustable and accurate, for every node is available for processes. For example, blockchain management can help manufacturers track the source using RFID tags and avoid counterfeits leveraging smart contracts and QR codes without intermediaries.
10. Ensuring Compliance
In a centralized database system, there are records with sensitive information that can be breached. With the combination of AI and blockchain, sensitive information is more secure and more transparent in a decentralized network system, making it easier for organizations to comply with privacy rules.
Summary and Conclusion
In conclusion, AI and blockchain technology are two disruptive technologies that have the power to change the way businesses operate. While AI can manage complex tasks such as language translation and sentiment analysis as they become more sophisticated, blockchain can provide a decentralized network for data sharing among peers. Combining these two revolutionary technologies can unquestionably help companies improve their data security, cut down costs, and increase productivity.