Artificial intelligence is still a hot topic despite some issues with the technology. Machine learning is creating new opportunities. The forecasted CAGR of the global AI fintech industry is estimated at 15.5% with strong expectations from the experts of Custom Market Insight that it will reach a massive $45 billion size by the year 2032. A solid chunk of this expected growth is in the sector of financial advice and management.
Predictive analytics in DeFi is already a serious field for R&D efforts in the decentralized finance ecosystem. It is possible to use the power of well-trained artificial intelligence to come up with solid prognoses about financial markets due to their outstanding ability to recognize patterns. While many challenges, such as poor data quality, the inability of many models to use different sets of information, and infamous hallucinations, exist, the future looks to be bright for this particular application.
Financial advisory is a huge sector with an expected market growth of 1.9% annually during the next five years. One of the most optimistic prognoses says that the industry may reach a mind-boggling size of $178 trillion by the end of 2029. A recent survey by Smarsh revealed that over 79% of all financial advisory companies believe that AI is critical for the sector with over 81% of companies admitting that they feel the pressure to roll out new AI-enhanced features asap.
We are leagues away from self-learning financial agents capable of making decisions independently from their supervisors. Nevertheless, many large investment companies are investing heavily in research and development to produce the next-gen AI that will perform better than an average financial analyst.
The same is happening in DeFi’s world. With DeFi markets expected to reach roughly $80 billion in size by 2030, it is easy to see why many financiers are hugely interested in developing autonomous systems that can operate in the sector that seems to be increasing trading volumes and liquidity across the board. Things like intelligent liquidity management are becoming crucial points of interest for many development teams.
The ultimate goal of many developers is to create a product that would be capable of the following:
The good thing is that the industry does not need to achieve AGI-like models that have extreme cognitive capabilities. Instead, the R&D efforts are focused on finding an optimal solution specifically for asset management and crypto trading. Interestingly enough, we already have many interesting instruments that can be used to build advanced AI-enhanced systems.
The participants of the DeFi ecosystem value its several key features, existing and upcoming, above all else:
An excellent addon on top of it would be fully automated DeFi decision-making. How can we get there? Fortunately, we already have interesting tools and products that many aspiring DeFi investors can use to test the potential of AI agents in the ecosystem.
For instance, some projects are focused on delivering advisors that can easily interact with automation instruments like HummingBot or GunBot where you can use algorithmic trading strategies in the decentralized finance space. The latter is capable of connecting directly to DEXes and other platforms and trading on behalf of users. This is only one example. Let’s talk about several others.
This particular project offers shared ownership of various AI that can be deployed in all sorts of media including games, streaming, and more. Note that agents are not limited to these particular fields. Some of them are useful in research and analytical applications. If you are hunting for new exciting opportunities to use these powerful AI-enhanced agents, check Virtuals out. The company has 586 different AI instances to choose from.
Many projects looking into ways to incorporate machine learning in crypto are looking with admiration at Fetch, a platform allowing developers to create advanced AI agents using their templates called uAgents. Many developers are familiar with frameworks like Lanchain, CrewAI, or Vertex. This platform uses them as the main building environment for those who are interested in building powerful artificial intelligence agents for all sorts of applications.
Simulation networks that allow developers and end users to test various independently deployed AI agents are very important instruments. At the moment, ElizaOS seems like a good choice for all tech geeks, enthusiasts, and developers who are interested in building anything that involves artificial intelligence. The platform already has over 3,000 forks and 275 active contributors.
DeFi Alpha is an interesting product that can change the landscape of the ecosystem and provide users with new tools and opportunities. While this agent is in active development, some of its features are intriguing, to say the least. Take a look:
It is great news for everyone since AI risk assessment and other such tools can be incredibly valuable to beginners and even seasoned veterans. All these excellent tools are either available or expected to be rolled out in the near future. The question is whether these autonomous agents will become something common and widely adopted. The potential is undeniable but there is still significant uncertainty.
The general hype surrounding artificial intelligence is colling down as many end users find consumer-grade models less useful than expected and many large tech companies like OpenAI failing to show revenue growth or applications outside of generating various forms of content. While impressive, it is not something worthy of billions of US dollars in investment.
On the other hand, the improvements in expert AI systems are very much appreciated by businesses and end users. We can expect further evolution and expansion of AI-enhanced tools like adaptive financial algorithms, financial advisors, and more. The DeFi sector is uniquely positioned to be among the biggest beneficiaries of this growth.
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