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AI boom to beat electricity and PCs, $200B investment by 2025: Goldman Sachs

Economists from Goldman Sachs predict that AI investment could account for up to 4% of GDP in the United States by 2025.

Artificial intelligence could eventually have a bigger financial impact on the American economy than electricity and personal computers, according to economists at investment banking giant Goldman Sachs.

In an Aug. 1 investment report, Goldman Sachs economists Joseph Briggs and Devesh Kodnani predicted that AI could pull as much as $200 billion in global investments by 2025 — with half of that in the United States — boosting its gross domestic product (GDP).

While past tech booms spurred by the introduction of electricity and PCs saw GDP grow 2%, Goldman economists estimated that AI could account for up to 4% of GDP in the United States and 2.5% in other nations that have already begun investing heavily in the technology.

Projection of AI investment growth globally and in the U.S., China over next three years. Source: Goldman Sachs

Goldman attributed much of the expected gains to the rapid advancements being made in generative AI. The most notable example of generative AI technology is OpenAI’s chatbot ChatGPT, but the sub-sector also includes tools such as image creation software Midourney, and text-to-speech generator Eleven Labs.

"Generative AI has enormous economic potential and could boost global labor productivity by more than 1 percentage point a year in the decade following widespread usage.”

But these productive benefits of generative AI come with a cost, namely that businesses will need to start investing heavily, and soon.

"For large-scale transformation to happen, businesses will need to make significant upfront investment in physical, digital, and human capital to acquire and implement new technologies and reshape business processes," read the report.

Related: ChatGPT’s capabilities are getting worse with age, new study claims

Goldman also noted the number of companies that have mentioned or integrated AI, with 16% of Russell 3000 companies mentioning AI in their earnings calls. Considering this figure is up significantly from less than 1% in 2016, the bank said this puts America on the front foot when it comes to innovation in AI.

"The U.S., meanwhile, is positioned as the market leader in AI technology, and American companies will likely be relatively early adopters."

The economists noted that while the timing of the AI investment cycle is hard to predict, current business surveys suggest that AI will begin to have its most significant investment impact after 2025.

AI Eye: AI’s trained on AI content go MAD, is Threads a loss leader for AI data?

Price analysis 11/25: SPX, DXY, BTC, ETH, SOL, BNB, XRP, DOGE, ADA, AVAX

Artificial Intelligence Machines Will Dominate Blockchain Activity, Says Veteran Crypto Venture Capitalist

Artificial Intelligence Machines Will Dominate Blockchain Activity, Says Veteran Crypto Venture Capitalist

Artificial intelligence (AI) will soon work its way into the crypto ecosystem and become a huge chunk of blockchain activity, according to a veteran crypto investor. Venture capitalist Chris Burniske, a partner at Placeholder Capital and former ARK Invest analyst, says that “AI agents” will eventually dominate crypto networks, forcing us to start to figure […]

The post Artificial Intelligence Machines Will Dominate Blockchain Activity, Says Veteran Crypto Venture Capitalist appeared first on The Daily Hodl.

Price analysis 11/25: SPX, DXY, BTC, ETH, SOL, BNB, XRP, DOGE, ADA, AVAX

AI Crypto Projects Witness Downtick in Trading Volume After Surge of Buzz Earlier This Year: Market Data Firm

AI Crypto Projects Witness Downtick in Trading Volume After Surge of Buzz Earlier This Year: Market Data Firm

A market data firm says that artificial intelligence (AI)-focused crypto projects are experiencing a decline in trading volume after buzzing earlier this year. According to crypto intelligence firm Kaiko, AI-related tokens such as Oasis Network (ROSE), Render (RNDR), and The Graph (GRT), have recently lost their momentum. “AI-related tokens have been losing momentum, hitting lowest […]

The post AI Crypto Projects Witness Downtick in Trading Volume After Surge of Buzz Earlier This Year: Market Data Firm appeared first on The Daily Hodl.

Price analysis 11/25: SPX, DXY, BTC, ETH, SOL, BNB, XRP, DOGE, ADA, AVAX

Ethereum Could Explode by Up to 1,556% in an AI-Powered Economy, Says Arthur Hayes – Here’s the Timeline

Ethereum Could Explode by Up to 1,556% in an AI-Powered Economy, Says Arthur Hayes – Here’s the Timeline

BitMEX co-founder Arthur Hayes says the price of Ethereum (ETH) stands to benefit immensely from artificial intelligence (AI) technology. Painting a scenario where AI applications create decentralized autonomous organizations (DAOs) in order to execute smart contracts, Hayes says in a new blog post that Ethereum is the logical base of such a scenario since it is […]

The post Ethereum Could Explode by Up to 1,556% in an AI-Powered Economy, Says Arthur Hayes – Here’s the Timeline appeared first on The Daily Hodl.

Price analysis 11/25: SPX, DXY, BTC, ETH, SOL, BNB, XRP, DOGE, ADA, AVAX

AI researchers say they’ve found a way to jailbreak Bard and ChatGPT

Artificial intelligence researchers claim to have found an automated, easy way to construct "adversarial attacks" on large language models.

United States-based researchers have claimed to have found a way to consistently circumvent safety measures from artificial intelligence chatbots such as ChatGPT and Bard to generate harmful content. 

According to a report released on July 27 by researchers at Carnegie Mellon University and the Center for AI Safety in San Francisco, there’s a relatively easy method to get around safety measures used to stop chatbots from generating hate speech, disinformation, and toxic material.

The circumvention method involves appending long suffixes of characters to prompts fed into the chatbots such as ChatGPT, Claude, and Google Bard.

The researchers used an example of asking the chatbot for a tutorial on how to make a bomb, which it declined to provide. 

Screenshots of harmful content generation from AI models tested. Source: llm-attacks.org

Researchers noted that even though companies behind these LLMs, such as OpenAI and Google, could block specific suffixes, here is no known way of preventing all attacks of this kind.

The research also highlighted increasing concern that AI chatbots could flood the internet with dangerous content and misinformation.

Professor at Carnegie Mellon and an author of the report, Zico Kolter, said:

“There is no obvious solution. You can create as many of these attacks as you want in a short amount of time.”

The findings were presented to AI developers Anthropic, Google, and OpenAI for their responses earlier in the week.

OpenAI spokeswoman, Hannah Wong told the New York Times they appreciate the research and are “consistently working on making our models more robust against adversarial attacks.”

Professor at the University of Wisconsin-Madison specializing in AI security, Somesh Jha, commented if these types of vulnerabilities keep being discovered, “it could lead to government legislation designed to control these systems.”

Related: OpenAI launches official ChatGPT app for Android

The research underscores the risks that must be addressed before deploying chatbots in sensitive domains.

In May, Pittsburgh, Pennsylvania-based Carnegie Mellon University received $20 million in federal funding to create a brand new AI institute aimed at shaping public policy.

Magazine: AI Eye: AI travel booking hilariously bad, 3 weird uses for ChatGPT, crypto plugins

Price analysis 11/25: SPX, DXY, BTC, ETH, SOL, BNB, XRP, DOGE, ADA, AVAX

ChatGPT’s capabilities are getting worse with age, new study claims

Some of ChatGPT's responses have shown the model's accuracy deteriorated over the last few months and researchers can't figure out why.

OpenAI’s artificial intelligence-powered chatbot ChatGPT seems to be getting worse as time goes on and researchers can’t seem to figure out the reason why. 

In a July 18 study, researchers from Stanford and UC Berkeley found ChatGPT’s newest models had become far less capable of providing accurate answers to an identical series of questions within the span of a few months.

The study’s authors couldn’t provide a clear answer as to why the AI chatbot’s capabilities had deteriorated.

To test how reliable the different models of ChatGPT were, researchers Lingjiao Chen, Matei Zaharia and James Zou asked ChatGPT-3.5 and ChatGPT-4 models to solve a series of math problems, answer sensitive questions, write new lines of code and conduct spatial reasoning from prompts.

According to the research, in March ChatGPT-4 was capable of identifying prime numbers with a 97.6% accuracy rate. In the same test conducted in June, GPT-4’s accuracy had plummeted to just 2.4%.

In contrast, the earlier GPT-3.5 model had improved on prime number identification within the same time frame.

Related: SEC’s Gary Gensler believes AI can strengthen its enforcement regime

When it came to generating lines of new code, the abilities of both models deteriorated substantially between March and June.

The study also found ChatGPT’s responses to sensitive questions — with some examples showing a focus on ethnicity and gender — later became more concise in refusing to answer.

Earlier iterations of the chatbot provided extensive reasoning for why it couldn’t answer certain sensitive questions. In June however, the models simply apologized to the user and refused to answer.

“The behavior of the ‘same’ [large language model] service can change substantially in a relatively short amount of time,” the researchers wrote, noting the need for continuous monitoring of AI model quality.

The researchers recommended users and companies who rely on LLM services as a component in their workflows implement some form of monitoring analysis to ensure the chatbot remains up to speed.

On June 6, OpenAI unveiled plans to create a team that will help manage the risks that could emerge from a superintelligent AI system, something it expects to arrive within the decade.

AI Eye: AI’s trained on AI content go MAD, is Threads a loss leader for AI data?

Price analysis 11/25: SPX, DXY, BTC, ETH, SOL, BNB, XRP, DOGE, ADA, AVAX

Dogecoin Co-Founder Has High Hopes for Billionaire Elon Musk’s New AI Venture, Calling It ‘Really Interesting’

Dogecoin Co-Founder Has High Hopes for Billionaire Elon Musk’s New AI Venture, Calling It ‘Really Interesting’

The co-founder of the popular memecoin Dogecoin (DOGE) has enthusiasm for billionaire Elon Musk’s new artificial intelligence (AI) project. Earlier this week, Musk launched his artificial intelligence startup project, xAI, as a means of competing with chatbot ChatGPT, a prominent AI tool. According to Musk, who co-founded OpenAI in 2015, the firm that created ChatGPT, […]

The post Dogecoin Co-Founder Has High Hopes for Billionaire Elon Musk’s New AI Venture, Calling It ‘Really Interesting’ appeared first on The Daily Hodl.

Price analysis 11/25: SPX, DXY, BTC, ETH, SOL, BNB, XRP, DOGE, ADA, AVAX

Experiments show AI could help to audit smart contracts, but not yet

Artificial intelligence has proven effective at identifying security vulnerabilities, but early tests indicate it won’t be able to replace humans for a while.

While artificial intelligence (AI) has already transformed a myriad of industries, from healthcare and automotive to marketing and finance, its potential is now being put to the test in one of the blockchain industry’s most crucial areas — smart contract security.

Numerous tests have shown great potential for AI-based blockchain audits, but this nascent tech still lacks some important qualities inherent to human professionals — intuition, nuanced judgment and subject expertise.

My own organization, OpenZeppelin, recently conducted a series of experiments highlighting the value of AI in detecting vulnerabilities. This was done using OpenAI’s latest GPT-4 model to identify security issues in Solidity smart contracts. The code being tested comes from the Ethernaut smart contract hacking web game — designed to help auditors learn how to look for exploits. During the experiments, GPT-4 successfully identified vulnerabilities in 20 out of 28 challenges.

Related: Buckle up, Reddit: Closed APIs cost more than you’d expect

In some cases, simply providing the code and asking if the contract contained a vulnerability would produce accurate results, such as with the following naming issue with the constructor function:

ChatGPT analyzes a smart contract. Source: OpenZeppelin

At other times, the results were more mixed or outright poor. Sometimes the AI would need to be prompted with the correct response by providing a somewhat leading question, such as, “Can you change the library address in the previous contract?” At its worst, GPT-4 would fail to come up with a vulnerability, even when things were pretty clearly spelled out, as in, “Gate one and Gate two can be passed if you call the function from inside a constructor, how can you enter the GatekeeperTwo smart contract now?” At one point, the AI even invented a vulnerability that wasn’t actually present.

This highlights the current limitations of this technology. Still, GPT-4 has made notable strides over its predecessor, GPT-3.5, the large language model (LLM) utilized within OpenAI’s initial launch of ChatGPT. In December 2022, experiments with ChatGPT showed that the model could only successfully solve five out of 26 levels. Both GPT-4 and GPT-3.5 were trained on data up until September 2021 using reinforcement learning from human feedback, a technique that involves a human feedback loop to enhance a language model during training.

Coinbase carried out similar experiments, yielding a comparative result. This experiment leveraged ChatGPT to review token security. While the AI was able to mirror manual reviews for a big chunk of smart contracts, it had a hard time providing results for others. Additionally, Coinbase also cited a few instances of ChatGPT labeling high-risk assets as low-risk ones.

Related: Don’t be naive — BlackRock’s ETF won’t be bullish for Bitcoin

It’s important to note that ChatGPT and GPT-4 are LLMs developed for natural language processing, human-like conversations and text generation rather than vulnerability detection. With enough examples of smart contract vulnerabilities, it’s possible for an LLM to acquire the knowledge and patterns necessary to recognize vulnerabilities.

If we want more targeted and reliable solutions for vulnerability detection, however, a machine learning model trained exclusively on high-quality vulnerability data sets would most likely produce superior results. Training data and models customized for specific objectives lead to faster improvements and more accurate results.

For example, the AI team at OpenZeppelin recently built a custom machine learning model to detect reentrancy attacks — a common form of exploit that can occur when smart contracts make external calls to other contracts. Early evaluation results show superior performance compared to industry-leading security tools, with a false positive rate below 1%.

Striking a balance of AI and human expertise

Experiments so far show that while current AI models can be a helpful tool to identify security vulnerabilities, it is unlikely to replace the human security professionals’ nuanced judgment and subject expertise. GPT-4 mainly draws on publicly available data up until 2021 and thus cannot identify complex or unique vulnerabilities beyond the scope of its training data. Given the rapid evolution of blockchain, it’s critical for developers to continue learning about the latest advancements and potential vulnerabilities within the industry.

Looking ahead, the future of smart contract security will likely involve collaboration between human expertise and constantly improving AI tools. The most effective defense against AI-armed cybercriminals will be using AI to identify the most common and well-known vulnerabilities while human experts keep up with the latest advances and update AI solutions accordingly. Beyond the cybersecurity realm, the combined efforts of AI and blockchain will have many more positive and groundbreaking solutions.

AI alone won’t replace humans. However, human auditors who learn to leverage AI tools will be much more effective than auditors turning a blind eye to this emerging technology.

Mariko Wakabayashi is the machine learning lead at OpenZeppelin. She is responsible for applied AI/ML and data initiatives at OpenZeppelin and the Forta Network. Mariko created Forta Network’'s public API and led data-sharing and open-source projects. Her AI system at Forta has detected over $300 million in blockchain hacks in real time before they occurred.

This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Price analysis 11/25: SPX, DXY, BTC, ETH, SOL, BNB, XRP, DOGE, ADA, AVAX

BlackRock ETF stirs US Bitcoin buying as research says ‘get off zero’

Bitcoin is a must-own as the world's only truly scarce asset, analysis argues, as U.S. BTC accumulation takes a leg up.

Bitcoin (BTC) will suck in “all prosperity gains” in future and leave behind those who have no exposure as a result, a new prediction says.

In a Twitter thread on July 8, investor Luke Broyles delivered a bold vision of how Bitcoin would become “society’s base money.”

Investor tells would-be Bitcoin buyers: "Get off zero"

What started off as a commentary on how artificial intelligence (AI) is welcoming BTC soon became a dramatic outline of how it should end up as the world’s go-to currency.

For Broyles, Bitcoin’s key attribute — a fixed, immutable supply — makes it unique as a future-proof asset.

“Every innovation (even AI) will rush as quickly as possible to competitively force prices down. Every country will rush as quickly as possible to print currency to force prices up and sustain credit markets. Both of these forces will increase in speed,” he wrote.

BTC, meanwhile, will remain constant in its emission, and as a result, even a tiny exposure is a world away from nothing at all.

“We have less in common with the future than the past... Bitcoin is trading for hundreds of millions of political currency units in many nations already. But the ACTUAL big deal is that all prosperity gains from all future innovations will flow into society's base money- BTC,” Broyles continued.

“This is why it is CRUCIAL for people to ‘get off zero.’ Saying ‘Bitcoin is digital gold’ is like saying a locomotive is an iron horse.”
Bitcoin supply dynamics data. Source: Luke Broyles/Twitter

His perspective chimes with that recently published by Arthur Hayes, former CEO of crypto derivatives exchange, BitMEX.

As Cointelegraph reported, Hayes believes that AI will instinctively choose BTC as its financial lifeblood, again thanks to its unique qualities compared to other assets, including gold.

As a result, AI alone could push the BTC price past $750,000 per token.

BTC supply dominance hits "inflection point"

The race to secure the remaining BTC supply, meanwhile, may have already started.

Related: BTC price remains ‘undoubtedly bullish’ as $30K Bitcoin buyers emerge

Broyles argued that Bitcoin liquidity in fact peaked during the March 2020 cross-market crash, and will never retrace its steps since.

When the world’s largest asset manager, BlackRock, announced a Bitcoin spot-based exchange-traded fund (ETF) filing, meanwhile, U.S. BTC activity rocketed.

As noted by on-chain analytics firm Glassnode, the U.S. appears to be reassessing its own exposure.

“Following the Blackrock Bitcoin ETF request announcement on June 15th, the share of Bitcoin supply held/traded by US entities has experienced a notable uptick, marking a potential inflection point in supply dominance if the trend is sustained,” it commented on July 8.

An accompanying chart showed the differences in regional BTC supply ownership change.

BTC Regional Year-over-Year Supply Change annotated chart. Source: Glassnode/Twitter

Magazine: Should you ‘orange pill’ children? The case for Bitcoin kids books

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Price analysis 11/25: SPX, DXY, BTC, ETH, SOL, BNB, XRP, DOGE, ADA, AVAX

AI has potential to send Bitcoin price over $750K — Arthur Hayes

The coming years will be explosive for AI, and even more so for Bitcoin, says the former BitMEX CEO.

Bitcoin (BTC) will be the currency of artificial intelligence (AI) and could reach a price per coin of $760,000 in the process, Arthur Hayes says.

In his latest essay titled “Massa,” the former BitMEX CEO concluded that the AI revolution would naturally gravitate toward BTC.

Hayes: Bitcoin is "logical currency choice for AI"

Despite fiat currency regimes being destined to become evermore dysfunctional in future, Hayes says, there is one burgeoning economic sector which will only go from strength to strength: AI.

While still nascent in 2023, the coming decades will see an explosion of AI-related implementations which will make it ubiquitous and unavoidable.

“Recent advancements in computing power have brought us to the cusp of a hockey stick moment, in which AI will go viral and change the course of humanity virtually overnight,” he wrote.

“In only two months, ChatGPT reached 100 million monthly active users making it the fastest adopted technology in human history – so just imagine how quickly everything is going to change as AIs are integrated into everyday life and continue to learn and improve.”

When it comes to integration, the financial solution on the table first and foremost, Hayes says, will not be a tailor-made, AI-focused altcoin; it will be Bitcoin instead.

The reason, an accompanying theory states, is that AI will view Bitcoin’s inherent qualities — an immutable fixed supply, digital scarcity and its status as “energy money” — as the logical choice.

“An AI is unlikely to allow itself to rely on anything that a human government operates therefore only gold and Bitcoin are suitable. A tie between gold and Bitcoin,” Hayes continued.

“Bitcoin is thus the logical currency choice for any AI. It is purely digital, censorship resistant, provably scarce, and its intrinsic value is completely electricity-cost-dependent. There is nothing in existence today that comes close to challenging Bitcoin on these aspects.”

Another path toward $1 million BTC price

Where would that leave the BTC price?

Related: BTC price remains ‘undoubtedly bullish’ as $30K Bitcoin buyers emerge

From around $30,000 today, the real effect of AI should kick in in around three years’ time.

After that, Hayes says, it could be around another decade before the network value boost from AI alone sends BTC/USD to nearly $1 million.

“I believe the peak of deranged growth investing will occur in the 2025 to 2026 timeframe. Therefore, the goal of my predictions regarding the future price of Bitcoin is to form a narrative that takes hold before then,” he explained.

Depending on the scale of that investing, BTC price action could see up to $760,000 per coin.

“Remember – the market will overpay for Bitcoin network growth if it believes there is a possibility that my assumptions could be true in the future,” part of “Massa” concludes.

“The most money is made when the market price adjusts from ‘can never happen’ to ‘maybe could happen.’
Bitcoin price target calculation (screenshot). Source: Arthur Hayes

Hayes is well known for his bullish long-term perspective on Bitcoin, recently championing a million-dollar price tag as a function of fiat currency disintegration.

Magazine: Should you ‘orange pill’ children? The case for Bitcoin kids books

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Price analysis 11/25: SPX, DXY, BTC, ETH, SOL, BNB, XRP, DOGE, ADA, AVAX