Generative AI: Legal Challenges and Opportunities in the Crypto World




Artificial Intelligence has been very much in the news lately, and it seems that every day we hear about new amazing things that can be done with this technology. Yet with great power come great challenges. There are currently legal questions regarding A.I. content, that once sorted out, will open up brave new venues for using it, particularly in the crypto sector.

In Europe, an early EU agreement that may pave the way for the first comprehensive legislation controlling the technology requires companies using generative AI tools, such as ChatGPT, to report any copyrighted content used to construct their systems.

Nearly two years ago, the European Commission started drafting the AI Act to regulate the rapidly developing field of Artificial Intelligence, which saw a surge in interest and investment after OpenAI's AI-powered chatbot ChatGPT was made available.

Members of the European Parliament decided to continue to the next stage, named "the trilogue", where EU legislators and member states will work out the bill's final features.

The legislation is attempting to rank AI tools from low to limited, high, and unacceptable in terms of perceived danger. At stake are concerns regarding disseminating false information, biometric monitoring or using language that is biased

Legal Controversies in the U.S.

Europe is not the only place where Generative AI is stirring legal controversy. The question of whether A.I. can apply for and be granted patents for generating content has been recently put to test in America's law courts, when a case was brought that sought to have an artificial intelligence system named as the inventor on a patent.

The US Supreme Court refused to hear the case, which may appear to have laid to rest the controversial idea that could have transformed the intellectual property field. However, things are far from being settled on the matter and it has done nothing to calm growing worries that AI is threatening to upend other aspects of intellectual property law.

Though known mainly from OpenAI’s ChatGPT, the same technology is already being used to design semiconductors and suggest ideas for new molecules that might form the basis of useful drugs.

For now, such uses of AI do not appear to pose a serious challenge to the patent system since the technology is being used as a tool to help humans shape ideas rather than operating independently, said Chris Morgan, an IP partner at law firm Reed Smith.

However, referring to the possibility that AI systems might one day come up with inventions on their own, she added: 

Even before that stage is reached, she and other legal experts warned that systems such as ChatGPT could be used to churn out large numbers of new patent applications, flooding the patent office with claims in the hopes of scoring a big win.

How Generative AI will Affect the Crypto World

Portfolio management for digital assets is an area where Generative AI is expected to have a big impact. The growth of digital assets is increasing the complexity of managing a portfolio. To automate the process, generative AI studies market trends, generates estimates, and places trades. It will also be simpler for non-professional people to monitor their assets and manage their portfolios since the industry will continue to develop.

The creation of new digital assets is another area that's likely to have a major impact from Generative AI. It can make it easier to automatically build customized digital assets as technology develops. This could have a significant impact on the market since there will be an unprecedented amount of fresh cryptocurrency production, which will make the climate for token initiatives much more competitive.

AI and dApps

Another sector where generative AI is anticipated to have a significant impact is the development of new Decentralized Apps (dApps). Decentralized Apps are gaining popularity as consumers want for improved asset and data security and management. But right now, developing dApps is difficult and time-consuming. By autonomously producing code based on a set of inputs, generative AI might streamline this procedure, making the creation of dApps more simpler and faster.

"An image is worth 1000 words"

The generation of images related to crypto is already having an impact. These images are being used for marketing purposes and powerful motivators for investing in certain projects. They can also be used to infuse "life" into what may otherwise be perceived as overly technical descriptions, and thus showcase powerful crypto tech in a powerful new light.

 


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