The launch of ChatGPT has caused quite the furore, igniting a heated debate about the dangers of artificial intelligence.
The White House recently called leading tech bosses to the table to reiterate their “moral duty” to protect the public from the risks of this evolving technology.
Meanwhile, the “grandfather of AI”, Geoffrey Hinton, has quit his role at Google and is now warning of the “existential risk” machine learning could pose to humanity.
Pundits caution that digital intelligence could give bad actors the power to spread misinformation and replace thousands of jobs, causing widespread unemployment.
In an apocalyptic vision, some even fear that once AI becomes more intelligent than human beings, we could face a scenario reminiscent of the famous I, Robot movie starring Will Smith, where humanoid robots rise against their human masters.
Watch: Robot artist addresses UK parliament
Indeed, anyone who has tried ChatGPT, the AI chatbot developed by OpenAI, will agree that its capabilities are quite remarkable, even at this early stage in its development.
It’s not hard to imagine this useful chatbot evolving into a super intelligent technology, with which no human could ever compete.
Yet, amid all this fear of the unknown, we are failing to see the huge potential for AI to transform our everyday lives for the better.
A technological revolution
Instead of issuing warnings about job losses, we should take a step back and consider the wider picture.
AI will finally allow us to automate menial, repetitive tasks, allowing humans to focus their energy on work that requires imagination, creative thinking and in-depth research.
Instead of wasting hours on routine jobs, such as data entry, document processing and customer service, humans will use AI to solve complex problems, reduce errors and ultimately improve productivity.
Those who fear AI fear change, but change equals progress.
The arguments against AI we’re hearing today are the same as those posed against the Industrial Revolution that began in the 18th century.
Yet without it, we wouldn’t have electricity, modern medicine or any of the technological developments that are staples of modern life.
Of course, any major technological advancement will lead to an overhaul of the labour market, and AI is no different.
However, the opportunities created by AI will undoubtedly offset any short-term job displacement. While the World Economic Forum projects 85 million job losses by 2025 as a result of AI, it also estimates that 97 million new jobs will be created by this technology.
Another study found that investment in AI helps businesses transition to more educated workforces, with more employees holding university degrees and specialising in the strategically important STEM fields — science, technology, engineering, and mathematics.
We should embrace technology that drives such innovation rather than lament its potential dangers.
Transforming the crypto landscape
As well as promoting intellectual development, machine learning can inject much-needed efficiency into most economic sectors, from hospitality to investment banking to, most of all, cryptocurrency.
Indeed, when crypto and AI join forces, they will truly become a force to be reckoned with. AI has the power to eliminate friction from the cryptocurrency user experience, finally creating a seamless end-to-end Web3 journey.
No more clunky transaction approval processes and jumping between applications.
Artificial intelligence will automate the time-consuming background operations of crypto protocols, leaving the end-user to enjoy a one-click experience akin to that of Amazon.
This will remove one of the major roadblocks in the way of mass crypto adoption, paving the way for the digital asset ecosystem to replace legacy financial systems that are no longer fit for purpose.
The potential applications for AI span the entire cryptocurrency sector, from data providers to investment tools.
For example, AI bots can trawl through blockchain data to provide valuable insights, seek out attractive yield opportunities across the entire market and use them to build investment portfolios.
Effectively, AI can be a cheaper, non-custodial replacement for costly investment advice and fund management, opening up the world of investment opportunities to those who historically haven’t been able to afford it.
As bots become more intelligent, they can take over daily actions such as staking, unstaking and approving transactions, freeing investors and traders to make major strategic decisions.
Cryptocurrencies — in pictures
-
The crypto market, which includes currencies such as Bitcoin, pictured, has lost $2 trillion of its value in six months. Unsplash -
The price of Ethereum, the second largest cryptocurrency by market size, has fallen by 70 per cent this year. Investors and analysts are watching to see if it will dip below $1,000. Unsplash -
Dogecoin, supported by Elon Musk, is about 90 per cent down from May last year, yet it is outperforming Bitcoin and Ethereum in the current crash. Unsplash -
The government of El Salvador has invested $105 million in Bitcoin. President Nayib Bukele's embrace of the cryptocurrency as legal tender is being questioned as the market crashes. Getty -
Changpeng Zhao, founder of crypto exchange giant Binance, has compared the current market turmoil to the dotcom bubble of the early 2000s. Still, the company is aggressively pursuing licensing in international jurisdictions and introducing new products. Getty -
Tether is the biggest issuer of stablecoins, a type of cryptocurrency pegged to a traditionally stable asset like the US dollar. Most stablecoins are meant to maintain a constant price of $1 and are backed by real reserve funds, making it easy to convert crypto investments into cash. But Tether's financial statements show that may not be true, leaving the issuer and its investors vulnerable. Unsplash -
The recent crypto crash can in part be attributed to the collapse of TerraUSD, a stablecoin pegged to the US dollar through algorithms and linked to a "sister" cryptocurrency named Luna. When the price of Luna plummeted, TerraUSD also fell, creating a “death spiral” to practically zero for both coins. Unsplash -
On June 12 crypto lender Celsius Network said it had paused customer withdrawals, saying it needed “to stabilise liquidity and operations”. Investors are still waiting, with no signs that the current meltdown will let up. Getty
The human versus machine juxtaposition is an outdated sci-fi notion designed for cheap entertainment thrills.
In reality, AI will enhance our lives and take industry, technology and the services sector to the next level.
New opportunities will emerge that we didn’t even dare dream about before the emergence of machine learning. Instead of threatening humanity, AI will finally set us free.
Stefan Rust is chief executive of independent inflation data aggregator Truflation and former chief executive of bitcoin.com
