The European Union (EU) has been advised to prepare for the integration of blockchain technology and artificial intelligence (AI).
The European Blockchain Observatory and Forum (EUBOF), an initiative of the European Commission, monitored and analyzed blockchain developments across Europe and published a concluding report on May 24.
Authored by the Directorate-General for Communications Networks, Content and Technology, the report highlighted blockchain’s potential to integrate with other technologies and drive innovation.
The EUBOF identified a strong trend in the convergence between blockchain and AI. Sensitive AI datasets can be securely stored over the blockchain, which can be particularly useful in sectors like healthcare and finance, where data security is paramount.
Additionally, the convergence of blockchain and AI can enable decentralized AI networks. The report elaborated on the potential of these technologies to transform various industries by enhancing data security, promoting innovation, and creating new opportunities for technological advancements.
“This can reduce the risk of data monopolies and promote collaborative AI development.”
EUBOF also concluded that AI can improve smart contract functionality, which can be applied across various industries.
The European Commission’s study also acknowledged the continued growth of the decentralized finance (DeFi) ecosystem and anticipates the launch of new protocols and emerging applications.
Lastly, EUBOF anticipates that blockchain technology’s inherent interoperability, sustainability, and energy efficiency will be the primary driver of its continued adoption.
Read Cointelegraph’s crypto and AI guide to learn more about blockchains and how they work in real-world scenarios.
EUBOF made several recommendations in this area, including acting as a global knowledge hub for blockchain, strengthening Europe’s engagement with various stakeholders, and addressing issues arising from new innovations.
Concurrent to EUBOF’s report, on May 24, the EU announced plans to amend the current regulation governing the European High Performing Computer Joint Undertaking (EuroHPC), which dictates the use of supercomputers for AI development.
EuroHPC manages nine supercomputers across Europe, developed since the initiative’s outset. The new AI factories proposed by the amendment will further this mission. At the time, Willy Borsus, vice-president of Wallonia and minister for economy, research and innovation, said:
“Unity is the strength of Europe, and together we have achieved great goals. We have seen this with the development of our world-class supercomputers, and now we want to boost the outcomes of these powerful machines through trustworthy AI.”
Under the new regulation, hosting entities can receive up to 50% of the acquisition and operational costs of AI supercomputers from the EU. Ownership of these machines can be transferred to the hosting entities five years post-acceptance testing.
