According to Bitwise research, by 2030, blockchain and AI might boost the global GDP by $20 trillion.
TakeAway Points:
- Bitwise estimates that by 2030, blockchain and AI might increase the world economy by $20 trillion, indicating a substantial economic influence.
- Due to the demand for AI, major cloud firms anticipate investing $200 billion in data centres by 2025.
- Bitcoin miners like Core Scientific (CORZ) and Hut 8 (HUT) are entering AI-hosting deals, showcasing the synergy between crypto and AI industries.
Economic Impact of AI and Crypto
Artificial intelligence (AI) and cryptocurrency are poised to significantly influence the global economy, potentially adding a combined $20 trillion to global GDP by 2030, according to a recent report by asset manager Bitwise.
Juan Leon, a senior crypto research analyst at Bitwise, emphasized the transformative potential of these technologies, stating, “The intersection of AI and crypto is going to be even bigger than people imagine.”
This projection underscores the substantial economic contributions expected from the integration of AI and crypto technologies.
The report highlights the growing demand for data centers, AI chips, and electricity, driven by the race for AI supremacy. The four largest cloud companies are projected to spend approximately $200 billion on data center build-outs by 2025 to meet the increasing needs of AI firms.
Bitcoin miners, with their powerful chips, advanced cooling systems, and robust infrastructure, are well-positioned to support this demand. This synergy is exemplified by CoreWeave’s recent takeover offer for miner Core Scientific and their $3.5 billion deal to host CoreWeave’s AI-related services.
Other miners like Hut 8 and Iris Energy have also announced AI-hosting initiatives, indicating a broader trend of collaboration between the AI and crypto sectors.
AI-Linked Crypto Tokens Outlook
Despite the promising outlook for AI and crypto, AI-linked cryptocurrencies experienced a downturn following Apple’s annual developers event. Tokens such as Render (RNDR), Fetch.ai (FET), and SingularityNET (AGIX) saw declines of 3%-5% over the past 24 hours, while Bittensor’s TAO dropped nearly 6%. The CoinDesk Computing Index, which tracks tokens with AI-related utilities, fell by 2.5%, underperforming both Bitcoin (BTC) and the broader CoinDesk 20 Index.
The market had high expectations for Apple’s event, anticipating significant AI-related announcements. However, the unveiling of Apple Intelligence, a suite of AI features for iPhones, Mac, and other products, along with a partnership with OpenAI to integrate ChatGPT into Apple software, failed to impress traders. Consequently, Apple shares closed the trading session down nearly 2%, despite slight gains in key U.S. equity indexes.
AI Spread and Benefits
Beyond the crypto market, AI is driving substantial productivity gains across various industries. Clare Pleydell-Bouverie of Liontrust Asset Management highlighted the transformative impact of AI on companies beyond the tech giants like Amazon, Nvidia, Meta, and Microsoft.
She noted that AI is set to eliminate significant inefficiencies in jobs, leading to a “phenomenal productivity uplift.” This allows employees to focus on value-driving activities rather than administrative tasks.
Investment bank JPMorgan Chase is one such beneficiary, reportedly achieving a 90% efficiency gain with an AI-powered cash flow management tool. The bank is also developing IndexGPT, an AI-powered software service to tailor securities to customer needs. JPMorgan shares have risen approximately 15% year-to-date and nearly 40% over the last 12 months, reflecting investor confidence in its AI initiatives.
Consumer-facing companies like L’Oreal are also leveraging AI to enhance customer engagement. L’Oreal’s generative AI beauty assistant, Beauty Genius, boasts a 60% higher customer conversion rate than in-store advisors. This AI-powered system provides personalized beauty routines and product recommendations, showcasing the potential of AI to revolutionize customer service in the beauty industry. L’Oreal shares have seen modest gains, up around 0.2% year-to-date and 12% over the last 12 months.
