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AI’s Impact on the Crypto Market
Recent statistics indicate that the artificial intelligence (AI) market size is expected to exceed $3 billion this year. As a result, numerous crypto-focused companies have begun integrating AI into their products.
Utilizing AI in Compliance and Risk Management
Jacqueline Burns-Koven, head of cyber threat intelligence for Chainalysis, has expressed the company’s interest in using AI to enhance compliance, risk management, investigations, and product development. By leveraging AI, businesses aim to improve operational efficiency and speed.
AI’s Role in Simplifying Tax Filing for Crypto Users
ZenLedger, a crypto tax software provider, has partnered with april, an AI-powered financial company, to streamline the tax filing process for users. This collaboration will enable taxpayers to navigate through a unified flow, consolidating federal and state tax filing procedures for a more seamless experience.
Transforming Tax Documents into Software Code
Daniel Marcous, CTO and co-founder of april, highlighted the instrumental role of AI in developing a tax product covering various common tax scenarios, including income from crypto and digital assets. The company employs a process known as “tax-to-code,” utilizing large language models (LLMs) to interpret tax documents and transform them into software code.
AI-Powered Decentralized Finance (DeFi) Use Cases
Nick Emmons, co-founder and CEO of Upshot, emphasized the significant impact of AI in powering diverse DeFi applications. One such example is the creation of AI-generated price feeds for long-tail crypto assets, enhancing market efficiency and expanding the scope of digital assets within the DeFi ecosystem.
Challenges and Regulatory Considerations
While AI can enhance the efficiency of crypto products, challenges such as bias, manipulation, and regulatory uncertainties persist. Establishing trust in the creators of AI models and implementing measures to mitigate bias are critical considerations in the integration of AI with crypto technologies.
The lack of regulatory frameworks addressing AI applications further underscores the need for comprehensive policies to govern its usage. Recent initiatives, such as the establishment of the Artificial Intelligence and Advanced Technology Council (AIATC) in Abu Dhabi, reflect a growing emphasis on regulating AI across different jurisdictions.
As AI continues to evolve and permeate various aspects of society, the intersection of AI and crypto is poised for further development, subject to ongoing regulatory and technological advancements.