The Integration of Artificial Intelligence and Blockchain: Applications and Challenges in Economic Security and Data Privacy

Donald Bren School of Information & Computer Science, University of California - Irvine, 92606 Irvine, United States

^* Corresponding author: hongdaz1@uci.edu

Abstract

Artificial Intelligence (AI) and blockchain integrated have a transforming potential across many industries, most especially in enhancing data security, smoothing supply chains, or improving payment systems. While AI drives efficiency in the analysis of data, blockchain provides a secure, decentralized framework that ensures integrity through guaranteed transparency. The paper discusses the working relationship between AI and blockchain, focusing on their applications within economic transactions, supply chain traceability, and security within the Internet of Things (IoT). By integrating the predictive analytics of AI with blockchain's immutable ledger, a company can potentially handle any given risk in connected systems and amplify cybersecurity. Not that there are no challenges, such as scalability and integration with legacy systems, but this convergence indeed holds great promise and provides a robust solution to the demands placed on the digital economy and directions of future innovation. This review provides valuable insights for researchers and industry professionals seeking to utilize the combined strengths of AI and blockchain, offering a comprehensive understanding of how these technologies can address current security and efficiency challenges while laying a foundation for future advancements in digital infrastructure.