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“The Intersection of AI and Smart Contracts” | by Isabella Chloe | CryptoStars
“The Intersection of AI and Smart Contracts” \| by Isabella Chloe \| CryptoStars

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# “The Intersection of AI and Smart Contracts”

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Jan 23, 2023

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**Artificial intelligence (AI)** and **smart contracts** are two of the most promising technologies of our time. Both have the potential to revolutionize a wide range of industries and change the way we live and work. But what happens when these two technologies intersect?

The answer is that they create new opportunities for innovation and automation that were previously not possible.

One of the most obvious ways that AI and smart contracts can intersect is through the use of smart contract-based **decentralized autonomous organizations (DAOs)**. These are organizations that are run entirely by code, with no human intervention. AI can be used to make these organizations more efficient and effective by automating decision-making processes and handling complex tasks.

For example, a DAO could use AI to optimize supply chain logistics or analyze financial data to make investment decisions.

Another way that **AI and smart contracts** can intersect is through the use of smart contract-based prediction markets. These are markets where people can bet on the outcome of events and are often used to forecast the likelihood of future events. AI can be used to analyze large amounts of data and make more accurate predictions, which can be used to inform the decisions of traders and investors.

AI and smart contracts can also be used together to create new types of digital assets. For example, a smart contract could be used to create a digital token that represents a share in an AI-powered hedge fund. The smart contract would automatically manage the fund’s investments and distribute profits to token holders.

Finally, AI and smart contracts can be used to create new forms of decentralized finance (Defi) that are more efficient and secure. For example, a smart contract could be used to create a decentralized lending platform that uses AI to underwrite loans and assess credit risk.

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## **Here are some statistics related to Smart contracts and Artificial Intelligence:**

- _According to a report by MarketsandMarkets, the global AI market size is expected to grow from USD 21.46 billion in 2018 to USD 190.61 billion by 2025, at a CAGR of 36.62% during the forecast period._
- _According to a report by Transparency Market Research, the global smart contract market size is expected to reach USD 3.4 billion by 2027, growing at a CAGR of 29.5% during the forecast period._
- _According to a report by Zion Market Research, the global blockchain market size was valued at USD 708 million in 2019 and is expected to reach USD 60 billion by 2027, growing at a CAGR of 67.3% during the forecast period._
- _According to a report by Gartner, by 2023, 30% of all smart contracts will be self-executing, which will allow for the automation of complex business processes without the need for intermediaries._
- _According to a report by ResearchAndMarkets, the global blockchain in healthcare market size was valued at USD 80.8 million in 2019 and is expected to reach USD 2,948.8 million by 2027, growing at a CAGR of 60.4% during the forecast period._

It’s worth noting that the intersection of AI and smart contracts is a relatively new field of research and development, and there might be limited facts and figures available. As technology continues to evolve, more research and development will be done in this field and more facts and figures will be available.

# **Conclusion:**

In conclusion, the intersection of AI and smart contracts creates new opportunities for innovation and automation. Together, these technologies have the potential to revolutionize a wide range of industries and change the way we live and work. As the technology continues to evolve, it will be exciting to see what new applications and use cases will emerge.

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