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AI Is Not The Internet

Much of what is written and discussed about AI references the Internet. Since this is one of the most powerful technological innovations, at least in terms of impact, it is a natural tendency.

The challenge with this is we are beginning the process by misfiling the information. Simply put, we are in the wrong folder.

Generative AI is not akin to the Internet. The latter was the linking of computers, taking a core technology and putting it on steroids. Previously, individuals interacted with the device in front of them. It was useful and had some value but it was limited.

The personal computer was compounded once the Internet came about. Of course, the "computer" changes as the most common one today is the smartphone.

Essentially, the Internet actually drove value to the personal computer. It also opened the door for an information explosion where the generation was compounded through the ability to share. Today, we generate all kinds of data with our devices which is housed, mostly, in the cloud, and interacted with by other devices.

Also, it is a realm where the most common form of communication is device-to-device. The Internet allows computers to talk to each other.

New Computing

The best correlation to AI, specifically generative AI, is to the computer.

What we are dealing with new form of compute. These are built using different chip architecture, utilizing parallel processing. Companies are also building cluster systems, which are becoming supercomputers with massive amounts of compute.

One of the keys to this discussion is the word "generative".

We are dealing with a technology, just like the personal computer, that allows for the generation of information. Some can sit down on a PC (or smartphone) and create a document. The same is true with a chatbot. By going through a few simple prompts, a new document is created.

Thus, we should look at the trend in line with what the personal computer than the Internet. That will give us a better idea of where things are heading.

For the moment, we are still in the late 1970s with this technology.

People are starting to create agents, applications that can perform certain tasks. Big Tech is updating their LLMs on a regular basis, hoping to offer more "horsepower". Smaller models are being developed on specialized data that can assist the enterprise world.

The key is, much like the early days of computing, this is not worth much.

The Value Explosion Of AI

Many point to the fact that AI is "losing money". It is true that, for the most part, companies are not profiting from the development in this realm.

Again, here is where looking at this similar to the Internet is a mistake. The early days of computing were a rough slog. That said, we did see the explosion starting in the 1990s.

What happened that changed the computer industry? It was obviously the Internet.

Here is the explosiveness of AI. It is when the "Internet of AI" arrives that it will see the value skyrocket.

Personal computers had limited value when operating in isolation. Their value grew when they were connected, allowing for the sharing of information between them.

The Internet of AI is going to happen when AI agents are no longer isolated. Instead, they will interact the same way computers do today. Agent-to-agent communication will be the majority of the transactions, sharing data while handing a wide range of tasks.

Basically, think of a world where tens of billions of AI agents are connected, the same way nodes are today, interacting with each other in a distributed manner.

Cryptocurrency's Role

The final piece of the equation is cryptocurrency.

With all this future activity, do you think we are going to see cash moved around? The answer is obvious since we do not see that happening now. To follow up, how are payments going to be made and the transfer of value taking place? Will an AI agent simply swipe a Visa card?

My view is the traditional financial system is not going to enter into this. It simply cannot. Why would agents have financial intermediaries written into them? This is not what developers do. They want as few layers as possible. Anything additional only serves up the potential for more bugs.

When we have automation taking place, with billions of agents operating, the transfer of value will utilize crypto. This was designed in the digital realm, hence it is the ideal solution. Agents are going to provide a host of activities, using compute from someone else in many instances. To facilitate the activity, a transfer will be required.

Cryptocurrency Networks will be utilized.

In other words, trillions of dollars in transactions will be taking place between the different AI agents. It will be an automated economy that far outpaces the one we have now.

Things get very interesting when we consider the agents will not just be housed in computers but also in robots.

These trends are interconnected.

Posted Using InLeo Alpha