The promise and challenges of crypto + AI applications

Crypto and AI intersect in several promising ways, and the most viable is AI acting as a player in on-chain mechanisms. Its main example is prediction markets, where AIs that work for under $1 per hour could make small markets function, even with a $50 liquidity subsidy that would not attract humans. Using AI as a user interface, such as explaining transactions before signing, is described as high potential but risky, because an open-source AI assistant gives attackers the same access to tune scams against it.