Complementary and Synergistic Properties of Blockchain and Artificial Intelligence

Abstract

Artificial intelligence (AI) and blockchain are likely to bring powerful economic and social effects. Blockchain s ability to cryptographically validate identities and transactions and create immutable records can enhance trust, transparency, and accountability. Part of the fascinating character of the AI stems from the fact that computers perform better than humans in repetitive tasks. Their judgment and intelligence are not affected by emotions, feelings, and needs. They have better memories and can process large amounts of information.1 AI, thus, enhances efficiency and provides new opportunities for cost savings and revenue generation. What is even more important is that AI and blockchain have strong complementary capabilities that can have dramatic effects on the performance of industries and markets. Each also has a potential to improve the performance and functioning of the other (see Figure 1).