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Breaking Boundaries: When Blockchain Meets Artificial Intelligence
AI & MI Blockchain

Breaking Boundaries: When Blockchain Meets Artificial Intelligence

By Debopam Majilya July 14, 2023 - 266 views

Both artificial intelligence and blockchain are arguably the biggest game-changers in the cutting-edge technology space today. And what happens when they both combine? Something on the lines of next-generation synergy is created.

This magical blockchain-AI integration has several possibilities for path-breaking development in the future. Here are a few aspects that deserve your attention in this context. 

What is the impact of blockchain and artificial intelligence?

To gauge the impact of blockchain-AI integration would be a tough task, since as mentioned, it offers near-infinite possibilities for the world to leverage. Yet, a few things can be clearly identified in this regard: 

impact of blockchain and artificial intelligence
  • Blockchain represents immutable and shared ledgers which offer shared, transparent, and instant encrypted data exchange simultaneously across parties, while they complete and initiate transactions. Blockchain networks can track payments, orders, accounts, production, and more. Members automatically gain more trust along with more opportunities since they have a single version of the truth out there. 
  • AI (Artificial intelligence) is cutting-edge technology at its finest. It taps data, computers, and even machines to mimic decision-making and problem-solving abilities of human beings. It covers deep learning and machine learning too. They use AI-based algorithms trained on information to make classifications or predictions. They also get smarter and more accurate over time. AI helps automate repetitive tasks and improves experiences and decision-making. 
  • The blockchain-AI integration naturally ensures higher authenticity. Blockchain’s system of digital records offers better insights into AI frameworks and data provenance. This tackles explainable AI challenges while boosting data integrity and trust in AI recommendations. Blockchain can be used to distribute and store AI models for better audit trails and data security. 
  • This can also help in generating better actionable insights, ensuring superior data management and model sharing, and building a transparent/trustworthy data-based economy. AI can correlate, understand, and read data instantly. Blockchain can also offer access to high data volumes outside and within any organisation. 
  • Blockchain and AI-driven automation can offer more value to companies for making several processes more efficient. They can boost speed and remove hurdles/friction at the same time. For instance, AI models integrated in blockchain smart contracts work wonders in several ways. They can recommend products which are expired and need recalls or implement transactions. These may include re-ordering, stocking purchases, and payments. Disputes can be resolved, while sustainable shipping mechanisms can also be chosen. This is just one example of how the next-generation synergy works. 

AI and blockchain also have the potential to deliver great results for businesses in several sectors, including the following: 

  • Healthcare- Backing user needs, discovering insights based on patient data and patterns, surfacing insights on treatments, etc. Patient data can be stored on the blockchain. Organisations can access shareable and secure electronic health records while safeguarding patient privacy. 
  • Life Sciences- Blockchain and AI can enable higher traceability and visibility into supply chains and enhance clinical trial success rates. They can offer data analysis with decentralised trial frameworks. Other advantages include tracking, consent management, trial participation automation, and data gathering. 
  • Financial Services- They can enable higher trust and remove multi-party transaction obstacles. They can also boost transaction speed with consent given by applicants for personal records on the blockchain. Trust and automated procedures will enhance loan and other closings while boosting customer satisfaction too. 
  • Supply Chain Benefits- Digitisation and the trustworthiness/share-ability of data are key benefits along with automation and intelligence for transactions. Blockchain and AI are already enabling the transformation of supply chains throughout various industries.  

 AI for Supply Chain Management

 AI for Supply Chain Management

The next-generation synergy achieved through the combination of AI and blockchain will generate immense value for businesses and stakeholders throughout industries. From optimised supply chains to better productivity throughout industries like life sciences, healthcare, and financial services, the advantages are innumerable, to say the least.

Blockchain for Smart Contracts

Here are a few points that you may consider in this regard: 

Blockchain for Smart Contracts

For instance, IBM and Sonoco are collaborating to fix issues in the transportation of life-saving medication through enhancing the transparency of the supply chain. Pharma Portal is a dedicated platform that is powered by IBM Blockchain Transparent Supply. This monitors pharmaceuticals that are temperature-controlled across the supply chain for enabling reliable, trusted, and accurate data throughout several parties. In another example, Home Depot makes use of smart contracts on the blockchain for swift dispute resolution with its vendors. AI is also playing a crucial role in enabling superior supply chain management.

FAQs

1.How can blockchain enhance the transparency, security, and trustworthiness of AI-powered systems and applications?

Blockchain uses distributed ledger technology and is based on principles like consensus, decentralisation, and cryptography. This ensures higher transaction security, trust, and transparency. AI governance can easily verify, record, and audit data and decisions within this spectrum. 

2. What are some real-world use cases where the convergence of blockchain and AI has led to significant advancements?

There are several use cases in the real world where AI and blockchain have combined for multiple benefits. For instance, Home Depot is already using blockchain smart contracts for resolving disputes with its vendors. AI is also being leveraged for verification and insights in this case. 

3. What are the potential challenges and obstacles in implementing blockchain and AI together, and how can they be overcome?

Some of the major challenges include the need for more bandwidth and specialised technological/hardware capabilities. Others include integration with existing systems, technological expertise, data quality, and privacy guidelines. 

4. How does the convergence of blockchain and AI foster innovation and drive new opportunities for startups and businesses?

The fusion of AI and blockchain in innovative ways automatically help businesses and start-ups seize new opportunities. This enables the creation of highly efficient, secure, and transparent data management and exchange frameworks. Intelligent and automated decision-making systems can be leveraged for reliable and accurate results/outputs, triggering particular real-world outcomes. Data will always be tamper-proof and immutable while AI-based insights and automation will ensure higher productivity and lower costs at almost all levels. For instance, blockchain will ensure that you have tamper-proof and accurate data, which AI can analyse to unearth invaluable insights for businesses. 

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