In the dynamic world of technology, two key elements have emerged as driving forces of transformation: Web3 and Artificial Intelligence (AI). Web3, the decentralized web, and AI, the power of smart machines, have the potential to reshape the landscape of financial innovation. AAAI 2023 Inaugural Summer Symposium explores the opportunities and challenges presented by these cutting-edge technologies in the financial sector. The panel titled “Financial Innovation in the Age of Web3” is moderated by Prof. Feida Zhu (SMU) and with the panel of experts: Haidong Chen (Alibaba Cloud Intelligence), Wilson Wu (Ava Labs), Martha Zhang (StarryNift), Thomas Yu (KNN3) and Anndy Lian (Bybit).
Web3: Beyond Web2
Feida started the panel by setting the tone “The biggest change we have right now is the removal of the intermediary with web3 and decentralized finance happening.”
Web3 represents a paradigm shift from the traditional centralized Web2. It eliminates intermediaries, empowering users with direct control over their assets and data. The transition to Web3 allows for seamless and efficient peer-to-peer transactions, enhancing financial services. Notable developments in this domain include decentralized finance (DeFi), which offers exciting prospects for lending and growing assets without intermediaries.
The interoperability of Web3 opens the door to groundbreaking collaborations across various applications, resulting in a more integrated and user-centric experience. From social graphs to gamified experiences, the potential for value generation and asset utilization is vast. Web3 is not confined to crypto enthusiasts; even traditional financial institutions are incorporating elements of Web3 into their systems, bridging the gap between the two worlds.
Haidong raised a good point “The challenge is achieving mass adoption and integrating traditional financial systems with Web3.”. Mass adoption of Web3 remains a challenge. The convergence of Web2 and Web3, along with existing regulatory systems, calls for careful navigation. Striking a balance between old and new money while ensuring cybersecurity in a world where automated machine-generated content poses risks requires thoughtful consideration.
AI: The Game-Changer
The rise of AI has been nothing short of transformative. Its efficiency and automation capabilities have reshaped industries across the board. In the context of financial innovation, AI offers significant security and content generation opportunities. Machine learning algorithms can efficiently analyze vast amounts of data, enabling improved risk management and compliance.
Wilson added: “The challenge is to ensure security, compliance, and risk management in a world where machine-generated content and cyber attacks are prevalent.” For instance, AI-driven content generation could lead to abundant valuable information. On the flip side, it raises concerns about potential misinformation and its impact on cybersecurity. With AI-generated attacks becoming a real possibility, safeguarding against cyber threats becomes more critical.
Anndy agreed and expanded on the point “AI and Web3 can work hand-in-hand to revolutionize financial services. AI-powered language models can simplify programming on blockchain platforms like Web3, enhancing app development and security. By combining the strengths of both technologies, financial services can be streamlined and made more accessible.”
Navigating the Future
The fusion of Web3 and AI promises a bright future for financial innovation. Embracing decentralization, enhancing security measures, and ensuring seamless interoperability is key to harnessing the full potential of Web3. Meanwhile, leveraging AI’s efficiency while being cautious about potential pitfalls will drive better financial solutions.
In conclusion, the convergence of Web3 and AI holds immense promise for reshaping financial services in the age of innovation. As these technologies continue to evolve, financial institutions, businesses, and individuals must adapt to a new era of possibilities. By embracing these advancements thoughtfully and responsibly, we can unlock a future filled with endless opportunities for growth and prosperity.
The panel was held on 18 July 2023. Hosted by Singapore Management University (SMU) and co-hosted by Moledao.
Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.
Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.
An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.