Will blockchain or A.I. dominate the future of finance?
The finance industry has already witnessed significant changes with the rise of fintech, around-the-clock banking, and contactless payments. However, the next five years are expected to bring even faster changes as two powerful technologies, blockchain and artificial intelligence (A.I.), continue to disrupt the sector.
Currently, A.I. is receiving most of the hype and attention. Predictive learning models offer the promise of remaking not only financial infrastructure but also large parts of society and culture. For example, the credit card industry may soon offer hyper-individualized cards tailored to every individual’s quirks and shopping habits. The use of A.I. in finance is not new, with chatbots, call center routing, and loan assessments utilizing some form of A.I. for years. The difference now is the rapid acceleration of A.I. integration in the industry.
Blockchain, on the other hand, seems to have taken a backseat to A.I. lately, despite being hailed as the next big thing for finance. However, both technologies will play pivotal roles in shaping the future of finance. Banks and other big firms are still adopting blockchain, as distributed ledgers provide a superior way to move money and record transactions. As blockchains, especially Ethereum, continue to evolve, their capabilities will only improve.
The finance sector, traditionally associated with manic stock brokers or boring yield tables, has become an exciting place to be as technology revolutionizes it in ways that are still being comprehended. The integration of A.I. and blockchain will redefine the industry, creating new opportunities and challenges.
Overall, the finance industry is witnessing a transformative period driven by technological advancements. While A.I. gains much of the attention currently, blockchain remains a vital component of the changes happening in the sector. As these technologies continue to evolve, their impact on finance will become increasingly evident.