Technology Trends: The Next iPhone Moment -The Rise of
Gen AI and Blockchain Technology

By Murad Baig

Generative Artificial Intelligence

Gartner has included generative A.I. in its Emerging Technologies and Trends Impact Radar for 2022 report as one of the most impactful and rapidly evolving technologies that bring productivity revolution. Generative A.I. refers to unsupervised and semi-supervised machine learning algorithms that enable computers to use existing text, audio and video files, images, and even code to create new content. The idea is to generate original artifacts that look like the real deal. But why are these models disrupting the Big Tech industry where we have had the likes of IBM Big Blue and Google Deep mind making big waves in the past?

The belief that companies with the biggest data sets will lead innovation (such as A.I.) took a hit in 2022. Numerous start-ups emerged with compelling products that can give large tech companies a run for their money. That reality is reflected in some A.I. products generating buzz, such as Stable Diffusion, which got 10,000 stars on GitHub in less than two months, or ChatGPT (conversational A.I. tool), which crossed the threshold of one million users in five days. ChatGPT owner OpenAI projects US$ 1 billion in revenue by 2024. As a result, A.I. “decentralization” has matured, which refers to the development of advanced A.I. technologies not monopolized by players with access to massive, decentralized, and proprietary data sets. in 2023, we will see early indications of how this decentralization can disrupt different sectors starting with entertainment, gaming, healthcare, logistics and transportation, the travel industry and marketing, where new technologies have traditionally made early inroads.

Optimising the Language Models for Dialogue by OpenAI

Proceed With Caution

IDC (International Data Corporation) estimates global spending on A.I., including software, hardware, and services, was $118 billion in 2022 and will surpass $300 billion in 2026, but it does not identify A.I. software as a separate market. Considering how expensive top-of-the-line hardware for A.I. is, it’s likely that software is a small percentage of that total. The relentless pace of Moore’s law means that these things will advance at 18- to 20-month doubling periods. People could look back at ChatGPT and say, ‘that was so basic and boring.’

Dark Side of Generative AI: Is it that dark?

Misuse: Initially created for entertainment purposes, the deep fake technology has gotten a bad reputation. Being available publicly to all users via such software as FakeApp, Reface, and DeepFaceLab, deep fakes have been employed by people for malicious activities. For example, in March 2022, someone hacked a Ukrainian news channel and posted a deep fake video of Ukrainian President Volodymyr Zelensky telling his people to surrender. Though it was evident that the video was fake, it caused manipulation in social media.

Lack of interpretability: Generative AI models can be difficult to understand and interpret, making it challenging to know how they arrived at an output. This can make it difficult to trust the results generated by the models and harder to identify errors.

Job displacement: Generative AI models can automate tasks previously done by humans

Decentralised Architecture and Ecosystems

Blockchain-based ecosystems are becoming the key to creating and monetizing digital assets and creating digital trust. From cybercrimes to data misuse, digital trust issues undermine trust in traditional institutions and the technology that powers them. Decentralized ecosystems and blockchain-based businesses disintermediate trust, distributing it among the community instead of a single individual or organization.

For Organizations like Blackrock, Clearstream, and Goldman Sachs, tokenization of assets is the top use-case to increase trust in the capital markets through eliminating system and process inefficiencies.

The Central Bank Digital Currencies (CBDC) are based on tokens or digital representations of value and function in the same way as hard currencies. To meet new demands for money and establish more direct, efficient, and transparent payment systems, tokenization and decentralization are critical.

Web 3.0 is driven by blockchain, decentralization, and tokens. WEB 3.0 could free us from its predecessor’s obsession with clicks and likes by changing how content is made, managed, protected, and monetized. Producers and consumers can gain power from a disintermediated web. Blockchain, decentralization, and CBDC can promote greater financial inclusion since people can transact without relying on an intermediary. Digital money is well suited to transactions in low-trust environments or areas with limited legal enforcement of contracts because it lacks intermediaries.

One World Two States

In addition to all these benefits, the U.S. dollar faces threats – shifting geopolitical alliances, pressure to invoice in alternative currencies, and deeper and more open foreign financial markets. CBDCs today are interweaving BRICS central banks to replicate the global correspondent banking system that the U.S. dollar system relies on. China and India have one, too; Brazil and Russia will launch one by 2024. The UAE already has one under project ABER, while Saudi Arabia and the UAE are exploring a single dual-issued currency for domestic and cross-border settlements. Add to that President Xl’s ‘ask’ for renminbi settlement of oil and gas in exchange for transformative investments, and maybe project ABER and an e-petroyuan can threaten the petrodollar.

Immersive Internet for Enterprise

The interaction between humans and computers will move from screens to immersive virtual experiences created through digital worlds like METAVERSE. Roblox and Fortnite were the first to move in this direction, but over the next years, the technology will graduate from labs into enterprise world. Unlimited opportunities for immersive work and collaborative experiences will strengthen the expanded ways of working with mixed reality.

Interoperability in the Metaverse Briefing Paper – World Economic Forum January 2023

Risks

Privacy risks: As the metaverse becomes more prevalent, there is a risk that personal data and information may be compromised or stolen.

Addiction and escapism: Individuals may become addicted to the metaverse and spend excessive amounts of time in virtual worlds, potentially neglecting their real-life responsibilities.

Virtual crimes: As the metaverse becomes more realistic, it may become a breeding ground for criminal activities such as hacking, fraud, and intellectual property theft.

Government regulation: Governments may have different views on regulating metaverse, leading to potential conflicts and lack of interoperability.


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