Artificial Intelligence And Blockchain. The technological revolution we are experiencing involves organizational disruption, change, and people management. This unstoppable digitalization process, accelerated by the Covid-19 crisis and boosted after the approval of European public funds for business transformation and innovation, has in artificial intelligence and other technologies, a high potential for application in different areas of business activity, especially in productivity, resource optimization, and process automation.
When we talk about Artificial Intelligence, we are talking about one of the key technologies of digital transformation, which allows us to make more accurate decisions about sales, marketing, product or service development, and other strategic areas. But what is its role within companies?
If we look at entertainment (where almost everything starts together with the military world as far as technology and uses are concerned), artificial intelligence is already part of our daily lives, Instagram, Netflix, Siri or Alexa, Google, Amazon, all already use AI, and as users, it is a technology that we already have normalized and assimilated. Currently, 80% of companies are investing in Artificial Intelligence (AI), according to a study conducted by Vanson Bourne to 260 large organizations with global operations, and presented by Teradata.
But what do companies expect to gain when they invest in AI? Improve business productivity and, consequently, profitability. In other words, try to “do more with less”. More efficiency, lower costs, more revenue… In short, improve current results.
But they often fail to achieve these improvements. You have to focus on data, and more specifically on quality data, which is the differentiating effect that drives transformation. Data optimize sales channels, is key to understanding customers and their preferences, but also drives innovation and operational efficiency, as well as enabling scenarios to be projected and estimates to be applied through statistics.
How we use the data we obtain is what allows companies to be able to apply these new transformational methodologies that move our processes from linear to exponential growth. And this is precisely the key role of AI in terms of digital transformation.
With previous technologies, as governed by Moore’s Law, the number of transistors on a microprocessor doubled every two years. Today, there is already talk of Huang’s law, a name inspired by the CEO of Nvidia, Jen-Hsun Huang. This law states that the performance of the GPU (graphics processing unit) in artificial intelligence will double every year, which means a much faster growth as we can see in the mobility and autonomous driving sector, where in a few years it is advancing by leaps and bounds. Companies that understand the role of artificial intelligence, how to apply it and how to make the most of it will have a competitive advantage both in their sector and in the possible creation of new systems.
Another key technology that enables digital transformation is blockchain. The blockchain functions as an immense database for the registration of information shared among multiple participants and, therefore, can only be modified or updated with the consensus of the majority of them (i.e. 50% plus one), giving rise to an immutable and incorruptible record. It also enables fast and secure transactions, automating operations and reducing costs with distributed registry technology. The process is as follows: first a transaction is created, then it is authenticated, the new block is generated, verified, chained together with the rest of the blocks, and the transaction is completed. This tool is already found in the banking or cybersecurity sector, and offers a number of advantages, especially to the real estate sector, by providing for example transparency and traceability in transactions.
The blockchain allows the management of reliable transactions in real time, and the possibility of fraud or loss of information is greatly complicated, which increases security and reduces costs. Additionally, it allows a database of all properties (like the Land Registry) and makes it possible to securely store 100% of the data of all property information. All historical transaction information could be available, such as what price a property has been bought and sold for, whether it has been rented or a history of rental prices for that property.
In summary, the advantages offered by blockchain in the real estate sector are:
– Greater information transparency and security.
– Reduced costs and execution times.
– Traceable, decentralized and unalterable data.
– Creation of smart contracts.
– P2P platforms for buyers and sellers.
– More comprehensive fraud prevention and control.
Even with the disadvantage of time in terms of market development, which will become clearer over the years, its implementation is a great advantage for the real estate market. The professionals of the sector must be trained in blockchain to obtain a better knowledge of this technology in order to be able to implement it effectively in the real estate processes, covering all the possible advantages offered by the tool.
As Professor Ahmed Banafa said in an article for BBVA, “artificial intelligence and blockchain is the ideal couple for companies”, they are undoubtedly two of the technologies of the moment and take full advantage of the profitability of data. As he names in his article, blockchain can be applied for data protection, allowing to create backups in a perfect system of information, but also for the monetization of the same, as companies like Google or Facebook and other Silicon Valley giants do before these and other technological challenges called to benefit people, companies, and society in general.
¡Stay tune! Go and visit our blog. New articles every week.