Artificial intelligence is one of the hottest topics of 2023. Much of the credit for this goes to the developers of ChatGPT, but upon closer examination, it appears that the concept is much broader than simply an online assistant. CP Media talked to Giorgi Chagelishvili, Managing Director of Binance’s branch in Georgia, about the prospects and risks associated with AI, as well as its application, including in the work of cryptocurrency exchanges.
Interview with Binance’s Top Manager on AI’s Impact

At what point did you realize that AI is a transformative technology, as significant as the Internet was in its day? 

Many experts agree that AI has been recognized as a transformative technology for at least the past decade. One key turning point was when deep learning techniques started to show remarkable progress, particularly around 2012 with a breakthrough by Alex Krizhevsky, Ilya Sutskever, and Geoffrey Hinton in the ImageNet image recognition competition.

The development and subsequent iterations of neural networks and machine learning models have played a significant role in elevating AI’s significance. As these models continued to improve and demonstrate impressive performance in various tasks, such as natural language processing, image recognition, and game-playing, people started to draw comparisons between AI and the Internet in terms of the potential impact on society, economy, and technology.

In recent years, the role of AI has undergone significant expansion across various industries, and its capacity to both disrupt and drive innovation has continued to grow. AI now powers many applications and processes we use daily, such as search engines, virtual assistants, and recommendation algorithms. As technology continues to advance, it is expected that AI will play an even more critical role in shaping our future.

In what areas do you think artificial intelligence has the greatest potential for application? 

AI has the potential to significantly impact a wide range of industries and businesses. 

  1. Some key areas include healthcare, where AI can enable early diagnoses, personalized medicine, drug discovery, genomics research, and assist doctors in decision-making. 
  2. In finance, AI can streamline customer service through chatbots, detect fraud, automate trading, enhance credit ratings, and refine investment strategies. 
  3. Manufacturing and supply chains can benefit from optimized production methods, preemptive equipment breakdown detection, improved quality inspection, and streamlined inventory management. 
  4. The transportation industry can be revolutionized by AI through autonomous vehicles, smart traffic control, route optimization, and predictive maintenance. 
  5. Retail experiences can be personalized, with AI aiding in demand forecasting, inventory management, and pricing strategy optimization. 
  6. In agriculture, AI contributes to precision farming, crop monitoring, weather pattern prediction, and farm resource optimization. 
  7. For customer service, AI-driven chatbots and virtual assistants provide effective support, handling customer inquiries and delivering tailored assistance. 
  8. In education, AI customizes learning experiences, automates grading, predicts student performance, and offers intelligent tutoring systems. 
  9. Security and privacy measures can be enhanced by AI detection of cyber threats, improved encryption algorithms, and biometric authentication methods. 
  10. AI can also influence entertainment and media by recommending personalized content, generating tailored news articles, and aiding in the creation of realistic virtual worlds and characters. 
  11. Lastly, the energy sector benefits from AI optimization of energy usage, improved infrastructure maintenance, and prediction of power plant equipment failures. 

These examples highlight the numerous ways AI can improve efficiency, accuracy, and productivity. As the technology develops, it is expected to permeate even more aspects of everyday life and fuel the growth of entirely new industries.

Interview with Binance’s Top Manager on AI’s Impact

How do you personally use AI products in your work or everyday life? 

It may seem like we don’t encounter much AI in our daily lives and work. But it’s not like that. We all use voice assistants like Google Assistant, Siri, and Amazon Alexa for tasks like setting reminders, controlling smart devices, or getting answers to questions.

We all use AI in email services, like Gmail, to automatically filter and sort emails into categories such as spam, promotions, and social notifications. Recommendation algorithms that offer personalized suggestions in services such as Netflix, YouTube, and Amazon are also based on AI.

Google Translate, GPS and mapping apps, various fitness apps and wearables, and Google Photos’ — these are just a few examples of how people, (including myself) incorporate AI into their everyday lives to improve productivity, and convenience, and make tasks more comfortable and efficient. AI is everywhere. 

Could you share Binance’s plans to incorporate AI into existing products or perhaps create some new services based on it? 

These are just a few potential directions Binance might take in incorporating AI into the platform:

  • Enhanced trading. Binance could leverage AI to develop advanced trading algorithms and improve users’ risk management and decision-making. Additionally, AI can also be used to execute trades more efficiently and optimize strategies based on market conditions.
  • Customer support. Binance could further incorporate AI-driven chatbots and virtual assistants to handle user inquiries and support requests more effectively, providing quicker resolutions and freeing up human support staff for more complex issues.
  • Security and fraud detection. AI and machine learning can be used to monitor and identify potential security threats or fraudulent activities on the platform. This would improve Binance’s ability to prevent and respond to cyberattacks, as well as protect user accounts and assets.
  • KYC/AML compliance. AI can be deployed to streamline Know Your Customer (KYC) and Anti-Money Laundering (AML) processes, which would improve efficiency and accuracy in verifying user identities, tracking unusual transactions, and detecting potential risks.
  • Personalized user experience. AI could help Binance tailor content, notifications, and recommendations based on each user’s preferences and trading habits, creating a more engaging and customized experience.
  • Market analysis and insights. Binance might develop AI-powered tools to offer users advanced market analysis, sentiment analysis, and predictive indicators, allowing them to make more informed trading decisions.
  • Portfolio management and optimization. AI-driven solutions can be employed to help users optimize their portfolios, manage risk, and allocate assets more effectively based on various criteria such as risk tolerance, investment horizon, or market trends.
Interview with Binance’s Top Manager on AI’s Impact

In your opinion, what AI capabilities are the most promising for implementation in cryptocurrency exchanges? From the point of view of an exchange owner rather than a user.

AI implementation could benefit nearly every aspect of a cryptocurrency exchange, from security and compliance to user experience and financial management. By leveraging AI’s capabilities, exchange owners have the potential to create more secure, efficient, and user-friendly platforms that cater to the evolving needs of the cryptocurrency market.

Do you think AI technologies can help users in analyzing the market and predicting cryptocurrency prices?

​​AI technologies can indeed assist users in analyzing the market and predicting cryptocurrency prices. While it is challenging to accurately predict prices consistently, AI can enhance the decision-making process by providing valuable insights derived from large datasets. It’s essential to remember that AI algorithms do not guarantee accurate price predictions, and there is always some level of uncertainty in financial markets, especially in the highly volatile cryptocurrency space. Users should maintain a cautious approach, use AI tools as part of broader due diligence, and follow best risk management practices when making investment decisions.

Giorgi Chagelishvili, Regional Director at Binance, Speaks Out about AI

What do you think are the key risks associated with the use of AI and how could they be addressed? 

While AI has numerous benefits, it also comes with certain risks and challenges. Some of the key risks associated with AI usage and their potential mitigating strategies include:

  • Bias and discrimination. AI models, particularly machine learning algorithms, rely on data for training. If the training data contains biases, the AI system may develop biased decision-making processes. To address this issue, it is crucial to use diverse, representative, and unbiased training data, as well as perform regular audits to check for potential bias in AI models.
  • Privacy and data security. AI systems often require large amounts of data, which can lead to privacy concerns and data breaches. To minimize these risks, it is essential to implement strong encryption techniques, access controls, and anonymization techniques when processing and storing personal data.
  • Lack of accountability and transparency. AI algorithms can sometimes be complex and hard to understand, making it difficult to determine who is responsible when issues arise. To ensure accountability and transparency, it is necessary to develop guidelines and regulatory frameworks that outline respective responsibilities and establish AI ethics standards.
  • Job displacement. Widespread AI adoption may result in job losses, especially in repetitive, low-skilled tasks. To prepare for such challenges, governments and organizations should invest in up-skilling and retraining programs to help workers transition to new roles and industries that can benefit from human intelligence and creativity.
  • Over-reliance on AI. Excessive dependence on AI can lead to complacency and an erosion of human skills, especially in critical decision-making scenarios. A balanced approach should be embraced, combining the power of AI with human expertise and oversight.
  • Security and adversarial attacks. AI systems can be vulnerable to adversarial attacks, where malicious actors attempt to exploit system weaknesses. Strengthening system security, adopting robust AI models, regular penetration testing, and collaboration among AI developers and security professionals can help address these vulnerabilities.
  • Ethical concerns. AI usage can lead to ethical and moral concerns, especially when it comes to surveillance, decision-making in critical situations, and autonomous weapons. A collaborative approach involving policymakers, ethicists, AI developers, and other stakeholders needs to be adopted to establish ethical guidelines and regulations for AI development and deployment.

By addressing these risks proactively, AI can be developed and employed responsibly and ethically to maximize its benefits and minimize potential harm.

Interview with Binance’s Top Manager on AI’s Impact

What do you think about the attempts to limit the development of AI technologies and concentrate this sphere in the hands of “selected leaders?” This concerns the open letter from the Future of Life Institute. 

The possibility of AI being monopolized by selected leaders or the concentration of AI development and deployment in the hands of a few entities could negatively impact innovation, inclusiveness, and fair access to AI benefits. However, there are counterarguments in favor of global cooperation, open collaboration, and shared development. 

By encouraging open research and collaboration, the AI community can benefit from diverse perspectives, innovations, and applications. This approach can lead to more creative problem-solving and facilitate breakthroughs that might otherwise be missed.

Ensuring broad access to AI technologies can help bridge the digital divide and democratize the social and economic benefits of AI, particularly for underserved populations and developing countries.

Open collaboration and sharing of best practices can drive the development of AI technologies guided by globally accepted ethical principles. This, in turn, could lead to more responsible and human-centric AI systems.

While the Future of Life Institute’s concerns are valid, it is crucial to promote global cooperation, open collaboration, and shared development in the AI field. This approach benefits society at large and ensures that AI technologies contribute to the greater good of humanity as a whole.

What do you see as the main global value of artificial intelligence?

The main global value of artificial intelligence lies in its potential to transform various aspects of human life, drive innovation, and solve complex problems that have been difficult to address using traditional methods. Key areas where AI can make significant contributions on a global scale are various: from healthcare, climate change, and environmental management to social equity and inclusion.

Author: CoinsPaid Media
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