FameEX Hot Topics | EU Commission Pushed to Prepare for Integration of Blockchain and AI

The European Union (EU) is set to harness the transformative potential of blockchain technology and artificial intelligence (AI), as detailed in a recent report by the European Blockchain Observatory and Forum (EUBOF). This entity, initiated by the European Commission, has the mandate to track and analyze blockchain developments across Europe. Its latest report, issued on May 24, delineates the extensive opportunities blockchain presents for sectors like healthcare and finance, particularly through enhancing data security and fostering innovative applications such as decentralized AI networks.

According to EUBOF, there's a pronounced trend toward the integration of blockchain and AI technologies. This convergence is poised to yield significant improvements in smart contract functionality and decentralized finance (DeFi), thereby securing sensitive AI data sets on blockchain platforms, reducing the risk of data monopolies, and promoting collaborative AI developments. These technological synergies are anticipated to catalyze further innovation and foster the broader adoption of blockchain technology across different industries.

The report also highlights blockchain’s core attributes—interoperability, sustainability, and energy efficiency—as critical drivers of its continued adoption. EUBOF has proposed several initiatives to bolster this growth, such as transforming Europe into a global knowledge center for blockchain technologies, increasing engagement with diverse stakeholders, and addressing the emergent challenges from new technological innovations.

Concurrently, the European Commission is revising regulations to enhance AI development through supercomputing under the European High Performing Computer Joint Undertaking (EuroHPC). This revision includes plans to establish new AI factories, which will capitalize on Europe’s robust network of nine supercomputers. Willy Borsus, Vice-President of Wallonia and the Minister for Economy, Research, and Innovation, has highlighted the collaborative success in developing world-class supercomputers and expressed a firm commitment to augmenting their capabilities with reliable AI technologies.

The updated EuroHPC regulation introduces financial incentives for hosting entities, allowing them to cover up to 50% of the acquisition and operational costs of AI supercomputers. Additionally, it facilitates the transfer of ownership to these entities five years after acceptance testing. This strategic move is intended to amplify the AI capabilities of these entities and align with Europe’s broader objectives of technological advancement and fostering digital sovereignty.

Disclaimer: The information provided in this section is for informational purposes only, doesn't represent any investment advice or FameEX's official view.