September 16, 2024
By Anjali Kochhar
Businesses are racing to use ChatGPT and DALL-E and other generative artificial intelligence (AI) technologies, but they are faced with a rising challenge: converting this cutting-edge technology into actual commercial value while controlling major risks like data misuse and intellectual property (IP) theft. Although AI has the ability to completely change sectors, there are also hazards involved, particularly with regard to safeguarding sensitive data and creative output.
A recent survey by KPMG found that 92% of business leaders consider AI a moderate- to high-risk venture. One of the biggest concerns is the use of vast amounts of data, including potentially sensitive information from competitors, which could lead to legal issues and IP infringement. As AI learns from everything it can access, companies need to ensure that their data—and that of others—is used responsibly and securely.
Enter blockchain technology, often known for its role in cryptocurrencies. Blockchain, with its decentralised and transparent nature, is emerging as a key solution to these challenges. Acting like a “bouncer” for AI, blockchain can provide the security and verification needed to protect IP and reduce risks.
Here’s how blockchain helps: first, it creates a permanent, immutable record of transactions. This means that when companies use IP in AI training, they can track and verify its ownership through blockchain. This protects against unauthorised use and helps ensure proper attribution. Second, blockchain can embed IP into non-fungible tokens (NFTs) with smart contracts, specifying how it can be used—whether freely, with attribution, or for royalties. This system not only protects IP but also opens new revenue opportunities.
CEO of Cheqd, Fraser Edwards, has stated that “blockchain can act as a fundamental safeguard for AI applications by ensuring secure and ethical use of data and IP,” noting its role in creating transparent data economies and enabling decentralised data management.
Blockchain also reduces the risk of infringement by enabling companies to compare their content with others stored on the blockchain. This helps avoid unintentional copyright violations and legal disputes. Additionally, blockchain can offer legal certainty in a space where AI laws are still evolving. By establishing clear ownership and use records, businesses can stay ahead of potential legal challenges.
“Blockchain holds immense potential for India, especially in advancing sustainable development goals and fostering trust through decentralised technologies,” says Raj Kapoor, Founder and CEO of the India Blockchain Alliance. As the new India Strategy Lead at 5ire Network, Kapoor highlights the transformative power of blockchain in driving sustainability and innovation.
Blockchain also guarantees adherence to data protection laws, which is another important consideration for businesses employing AI. It offers an open approach to ethical data management, assisting businesses in adhering to legal standards and leveraging AI to drive innovation. Blockchain provides the security, transparency, and legal protection that AI requires, allowing organisations to harness AI’s potential in a responsible and safe manner. Together, AI and blockchain make for a strong combination.
About the author
Anjali Kochhar covers cryptocurrency, AI and blockchain stories in India as well as globally. Having been in the field of media and journalism for over three years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.
