According to a report released on June 1 by Coinbase, the recent surge in artificial intelligence (AI) has the potential to revolutionize the crypto industry. The report highlights that while AI investments have been declining, this trend is not unique to the AI sector, and there is still a significant amount of available capital that needs to be allocated.
Coinbase’s head of institutional research, David Duong, believes that the convergence of AI and crypto presents a valuable opportunity for entrepreneurs looking to build within Web3. Currently, crypto projects involving AI models account for only 0.07% of the total crypto market cap, indicating that they are still relatively uncommon.
Duong outlines several ways in which AI and crypto can collaborate. For instance, cryptocurrency platforms can enhance the accessibility of AI systems, enabling more people to contribute to their use and development. This is particularly important as a few major players currently dominate the generative AI space.
The report also suggests that the crypto industry can help address the problem of AI being exploited for disseminating disinformation. By utilizing blockchain technology, the authenticity of media such as videos, music, and images can be verified. Furthermore, blockchains can be employed to establish an auditable record of the decision-making processes employed by AI algorithms, which are typically opaque and difficult to scrutinize.
Moonfire Ventures, a British venture capital firm, is among the VC operations investing in AI. Founder Mattias Ljungman mentions that they employ AI technology to guide their funding decisions, making their identification of promising opportunities more efficient. By leveraging AI and machine learning to sift through thousands of funding applications, Moonfire Ventures can focus on building relationships with founders, a crucial aspect of the investment process.
In summary, the report underscores the potential of AI to reshape the crypto industry. It emphasizes the opportunity for entrepreneurs to explore the intersection of AI and crypto, the role of crypto in combatting AI-driven disinformation, and the use of AI by venture capital firms like Moonfire Ventures to streamline investment decision-making processes.