How integration of blockchain and AI will revolutionise business effectiveness

The technologies hold the key to unlocking efficiency and operational excellence combined with security and transparency

by Arto Bendiken

June 14, 2023

Image credit: Supplied

In recent years, the MENA region has seen an accelerated interest in digital transformation across various sectors. Among trailblazing technologies, the hot sectors of artificial intelligence (AI) and blockchains have emerged as profound agents of change. Their symbiosis holds the key to unlocking unprecedented efficiency and operational excellence combined with security and transparency, affecting sectors such as finance, energy, healthcare, education and beyond.

As the region is home to a young and growing population, there is a strong demand for innovative solutions that can help businesses to grow and compete in the global economy, and various sectors present opportunities for this tech fusion.

In finance, blockchain settlements enable efficiency and excellence without expensive middlemen. AI’s predictive analytics not only forecast market trends but automate fraud detection and risk assessment. Together, these technologies streamline operations, reduce costs, and improve security for banks, insurance companies, and other financial institutions.

Another area where AI and blockchain will have a significant impact is the energy sector. AI-infused smart grid systems will be used to optimise energy production, distribution, and consumption, reducing waste and improving sustainability. This will cut energy costs and improve efficiency for consumers and businesses. Blockchains, meanwhile, will ensure security and transparency in energy trading, fostering trust among consumers and providers.

With MENA being one of the world’s largest oil and gas producers, harnessing AI will help realise cost savings through optimised production schedules, improved maintenance operations, and predicted system failures.

Blockchain will not only benefit supply chain management, traceability, and contractual compliance in the sector but present opportunities for innovative new financial products, such as a synthetic commodity of a barrel of oil combined with its carbon offset (in the form of already removed and neutralised CO2) to address the environmental responsibilities that otherwise pose a challenge for the future acceptance of products from the sector.

The healthcare sector, too, stands to gain significantly from this integration.

In limited trials elsewhere in the world, AI is already being used to diagnose diseases, recommend personalised treatments, and manage patient care. Simultaneously, blockchains safe keep and share sensitive medical information, enhancing privacy and regulatory compliance.

And finally, the education sector is set to be disrupted like no other. With generative models like ChatGPT being illicitly used by at least half of American university students to do homework, it’s time to rethink higher education. AI will personalise learning experiences by analysing students’ abilities and tailoring a bespoke curriculum, thus enhancing educational outcomes.

Simultaneously, blockchains will securely store academic credentials, eliminating fraudulent degrees and guaranteeing a quick and easy transfer of credits across institutions globally.

AI and blockchain are as though two sides of a coin, complementing each other in creating a business environment that’s secure, transparent, and intelligent. With its ability to glean actionable insights from massive amounts of data, AI offers wiser decision-making and supercharged productivity. On the other hand, blockchain’s decentralisation adds a layer of security and transparency unmatched by traditional systems.

Arto Bendiken is the CTO at Aurora Labs