Binance sees great potential for using AI in crypto, opts to back ChatGPT

Updated: 15 February 2023

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ChatGPT, the new chatbot released by OpenAI, has become the most popular recent piece of technology around the world. It has inspired talks on Wall Street, and tech firms that decided to integrate its technology have seen major share price boosts.

As the most advanced chatbot that relies on AI and machine learning, the tool even captured the attention of Binance, the leading crypto exchange. Binance said that it sees huge potential when it comes to using AI in the crypto sector. Its new blog post outlined the importance of AI in the future optimization of crypto.

https://twitter.com/Coinzonestats/status/1625571002838290432

CZ on the potential of AI in crypto

The exchange’s CEO, Changpeng Zhao, also confirmed that the exchange leverages AI technology within its customer service and risk management departments. In fact, Binance decided to back the bot and advocate the importance of adding AI into many other areas of the crypto sector, including smart contracts, terminals, trading bots, security, analysis of market trends, and more.

Even so, Binance seems to be the most intrigued by the prospect of using ChatGPT for educational purposes. It seems convinced that integrating it in this section of the crypto industry could accelerate crypto adoption by quite a bit.

ChatGPT is different from typical chatbots, as it can communicate in a more advanced manner. CZ said that “In crypto adoption, the biggest benefit is how it can be used to answer questions about how to use crypto and the technology behind it… ChatGPT has the benefit of being able to help clarify concepts in an interactive and conversational manner.”

ChatGPT offers benefits, but it still has limitations and drawbacks

The chatbot could help newcomers grasp some complex concepts such as ZK-SNARKS and Account Abstraction. On top of that, it could answer all additional questions that users might have, and clarify any aspect of the concept that the user wishes to learn more about. Plus, it would understand follow-up questions and respond to them.

This is a much more user-friendly concept than simply researching a topic, where users have to read unnecessary content before they can locate the parts that they actually require.

On top of that, Binance also sees the business benefit of AI, such as reducing costs in the customer support sector. If the chatbot takes over simple communication and answering questions, customer support could be free to focus on more complex tasks.

Binance even admitted that this method of education would be superior to its own Binance Academy, which provides definitions and explanations for crypto concepts and terminology. However, it did point out that ChatGPT still has its limitations and drawbacks. After all, it is still technology, and it lacks common sense. With that said, users should not just “switch off their critical thinking.”