For value generation and risk management, blockchain can be a vital partner for artificial intelligence — and this isn’t just a theory. There are already real-world examples of blockchains helping address the surging demand posed by AI for computational power and the related environmental impact. Blockchain technology can also solve key challenges — related to security, oversight, compliance and excessive dependence on vendors — that arise from the centralized, “black box” nature of most generative AI models.
Financial institutions, large and small, should be especially attentive to AI challenges and blockchain solutions. As tightly regulated and scrutinized institutions, they cannot afford to let AI blow up their carbon footprints, open the door to cyber breaches, or create data governance, privacy and compliance risks. These are organizations that need AI to deliver valuable, risk-managed results at a reasonable cost.
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