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The cycle boom is making waves, and good things are happening across the Web3 landscape. As the prices rise, even while the Greed Index remains modest, there is a lot of attention around the tokens involved. Naturally, the usual suspects are taking the spotlight, and both individual prices and total market caps are looking very nice. That said, there is a subset of tokens that have been boosted especially high, doing more than just riding the current cycle wave. AI tokens are the current golden children, but it was caused by much more than simple buzzword hype. The AI industry as a whole is one of the fastest evolving movements in history, creating innovations that were science fiction just a few months prior. And AI platforms that find a way to intelligently pair with the benefits of Web3 have even more to offer, as blockchain has seen its own share of rapid evolution over the past 5-10 years. So what exactly has caused these AI tokens to rise? Let’s look at the three key reasons.
"AI-Exposed Occupations" Are on The Rise
Like all new technologies, there has been a real fear of what AI will do to us over the long term. Yes, there are bleak pictures painted of a dystopian future where humans are enslaved, or are hopelessly dependent as they lose their own intelligence. But the reality has been more complex than this, and honestly more positive than some have feared. Yes, AI will act like any other technology before it. People will use it for good and for ill, and we as people will be affected by it in our daily lives. These jobs are considered “AI-exposed” because AI doesn’t replace a worker, but there are ways in which AI can be utilized. In other words, the people working the jobs will use various AI applications to make their work more efficient, of higher quality, and more scalable. Given the fast growth of AI and the ability of a large group of humans to try many things and “upvote” those most effective, this will likely be a grassroots effort that is supported by organizations when they see real impact, with other organization-level AI applications also adding value. A PwC analysis confirms that the actual number of jobs in AI-exposed occupations are increasing, even those where the AI can contribute heavily to the task at hand.
AI's Proven Value to Real People
One great thing about AI’s journey is that although there is still hype around what AI can someday accomplish, its proven value is easily seen today. With the right problems to solve, the right (and affordable) hardware can embed itself into our lives in a way that quickly makes itself nearly indispensable. Just looking at the evolution of Large Language Models like ChatGPT shows a shockingly fast road from “never heard of it” to “can’t live without it”, where even some of the top minds in AI are concerned at users blindly trusting its advice without due diligence. Even so, this highlights the effectiveness of AI solving natural language barriers and its ability to sort through messy context and still provide solid answers.
This leads to the strongest reason why AI tokens are on the rise. When AI is showing real value and a strong upside for growth, and when that use case can be supercharged through tokenization, the result is incredibly powerful. For example, the platform VAI OS and its Life CoPilot are using much of the knowledge gained through this AI evolution, then combining with the wearables improvements and fueling the process with tokenization. Users use their wearables to generate rich data around their health, while the VAI OS uses adaptive AI to understand their goals and provide real time analysis of their readings, reach out to other elements like the users’ calendar to schedule doctors appointments, and more. The strong Web3 connection is also unique as it leverages blockchain to ensure the user owns their data, and ensures it stays safe and private onchain. Combining the strengths of AI and blockchain to solve these real world problems is exactly why AI tokens are not only on the rise, but still have plenty of room for growth.
AI Won't Replace People...
A succinct idea has been gaining attention lately that sums up this phenomenon: AI will not replace most workers; rather, workers who do not use AI to improve their jobs will be replaced by those who do. Certain jobs that exist today won’t exist as AI improves. Other jobs that you can’t even imagine today will be thriving industries in five years. But for most jobs, the result will be that those working it will improve by using AI. The results so far have proven this idea correct. It won’t be a perfect evolution because any time a new technology interjects itself into an industry there is a shakeup. However, AI seems to give more power to the workers than any other tech before it. Instead of the company trying to employ AI to replace the workforce (something that will almost certainly end in disaster for those who try in the next decade), the workforce can take their own destiny in their hands to improve their own work and the new evolved jobs they want to do. Workers can use AI to vastly improve quality by being able to analyze a product being inspected better than they could otherwise; they can search for ways to offload simple and repetitive tasks to AI, then use their time to start performing tasks that the company never had the time to do before. This can lead to scalability, new markets, new product development, and many other avenues. The world is seeing this happen today, and is seeing the results.
Final Thoughts
More than likely, we are on the front end of this AI token wave as more and more platforms emerge with truly valuable use cases that merge AI and Web3. While AI as a whole is rising, this period will likely boost the Web3 industry as a whole, and will introduce those looking for AI solutions to the benefits of Web3 as well. The future is uncertain as always, but watching the AI to Web3 positive reinforcement yield tangible results across industries offers a good deal of optimism.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team