Development in the artificial intelligence (AI) space is bypassing everyone’s expectations and every company is realizing that if they want to stay competitive, they need to adopt some type of AI strategy, according to Sami Kassab, Enterprise Research Analyst at Messari.
Speaking at The Intersection of AI and Crypto: What Institutional Investors Need to Know webinar organized by Arca, he said there is almost like “a new breakthrough in the AI space” every day.
“We’re also seeing new state of the art foundational models being released on a weekly basis,” he said.
“It’s actually becoming pretty stressful just trying to keep up with everything that’s going on,” he added.
The discussion focused on the opportunities of integrating artificial intelligence with blockchain technology.
Kassab also said: “We’ve seen a lot of investors in the space, specifically in crypto, that start to pivot towards AI.”
Meanwhile, Katie Talati, Head of Research, Arca, said that the main issue with AI right now is that the user experience (UX) is “really underwhelming”.
Kassab added that if we want this technology to reach mainstream adoption, we need to solve and address some of these UX issues.
He thinks that large language models (LLMs) can help solve the UX problems, basically helping make blockchains easier to use.
“I think LLMs are actually going to really help with the adoption of crypto,” he said.
Kassab also mentioned AI agents that could leverage blockchain infrastructure.
He thinks that LLMs already have mass adoption. “I think we could eventually see a lot of activity originating from these machines specifically,” he said.
Nick Hotz, Analyst at Arca, said that on the liquid side, the opportunities right now are relatively small in scope, but definitely accelerating.
“The big opportunity in terms of size, is the idea of a decentralized compute network,” he said.
Kassab agreed, saying this is the largest investment opportunity in the space. He said that if you look at the horizon of emerging technologies, which include IOT, AR, VR, the metaverse, zero-knowledge proves, these are all extremely intense in compute.
“I see the demand for compute growing exponentially. I think for the next few years, demand is going to continue to outstrip supply,” he said.
