When AI and Blockchain converge, intelligence will permeate commercial transactions

We have had smart contracts for a long time. Ethereum, the blockchain of the OG smart contract has more than a decade, but intelligence in smart contracts has always been rather rudimentary. If that, then that.

It works and, when it is carefully deployed, has created a lot of value. But what has long been for “intelligent” in assets and contracts in the blockchain world cannot be compared to the acceleration of the intelligence of artificial intelligence systems.

In the years to come, we can expect to see the two ecosystems continue to mature and accelerate, but they will also be united crossed. And the result will be an era of very intelligent contracts, assets and data.

Let’s start with the intelligence that is quickly spread around the business world. We find more and more that the AI ​​systems lack pits, and their performance can be considerably improved over time in ever smaller understanding imprints. It may not be great for manufacturers of AI models, but it is a boon for everyone, because it means that we can increasingly deploy intelligences in the most remote corners of the commercial ecosystem.

The operations of the supply chain are an excellent example of the place where the deployment of intelligence can overeat performance. Historically, most of the replenishment planning in retail stores is focused on the formula. While the stock falls below a minimum required, orders have placed. These formulas control minimums, maximums and economic quantities. Sophisticated users can push additional actions for major promotions and events. These are basic things, but it increases well because no retail chain can afford to have work as an inventory analyst on each product each week in each place for a personalized forecast and plan.

Now they can. Winter storm forecasts? Order hot chocolate. Summer heat wave? Additional cold drinks. News from an influenza epidemic? Colder medicine. Local supplier? Source from another store. Now do this for 31,000 offers each week – the average number of items stored in an American grocery store. Impossible today. Routine tomorrow.

Omnipresent intelligence requires quality data and everything is useless without action capacity. The inviolable and universally synchronized nature of blockchain data means that we can create good results on reliable information. And the intelligent contracts that reside on the chain can have the power to do things as a independent replenishment depending on the market plans developed by AI.

Autonomous trade means that assets can be intelligent alone, deciding how to maximize their value and their return on investment. The information itself can know where it is the most precious – and ask to be paid for access. And all of this can be executed on a large scale and with low costs.

The gain for this future is not difficult to grasp: stores that rarely lack stock, supply chains that do not block and contracts that always get the best price. Individually, each of them is precious, and together they can have an impressive multiplier effect. It is not only a question of avoiding lacking in product; It is also a question of not spending to accelerate logistics or have sales of overtock. The benefits that were lost on the fringes can now be preserved, all without increasing prices.

Arriving in this future will not be fast or easy. Economic research shows that although new technologies can become omnipresent very quickly, the average levels of use are not very sophisticated. Robert Solow pointed out in 1987 that he could see proofs of computers throughout the economy, with the exception of productivity statistics. The same thing happened with electricity.

It takes a lot of time to most companies to absorb technology and transform. Tyler Cowen, professor of economics at George Mason University, also hypothesized that, such as the first computers and electricity, the global takeoff of productivity for artificial intelligence will be relatively slow because companies and people take time to really understand how to use it.

What economists do not spend much time talking about, however, is that you don’t have to be the average person or the average business. Even if some companies find it difficult to absorb new technologies, there is a huge advantage to have for pioneers. Nor is it a short -term advantage. The first leaders in electronic commerce, cloud computing, office operating systems and mobile devices have retained their advanced positions for decades.

The era of omnipresent intelligence and operations, where AI systems create assets, contracts and intelligent data and perform a large scale on blockchain networks, arrives. This can take decades to be fully done, but you can choose to go first or not.

As the world leader in the blockchain of the professional service company EY, Paul Brody is responsible for the conduct of initiatives and investments in blockchain technology in the consultation, audit and taxes, including the construction of the Global Software-As-A-Service platform, Blockchain …com. He is also president of the Ethereum Alliance Enterprise, the main global community for the Blockchain company. He wrote this article for siliconangle.

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