The Future of AI and Blockchain: An Interview with Professor Nir Kshetri

Biography

Nir Kshetri is a professor at the University of North Carolina-Greensboro and a research fellow at Kobe University, Japan. He has authored sixteen books (with three more in press) and over 270 academic articles that have been translated into Arabic, Chinese, German, Spanish, French, Japanese, Portuguese, and other languages. Two of his books have received Choice Magazine’s Outstanding Academic Title award. His research and insights have been featured by hundreds of media outlets, including Al Jazeera, Barron’s, BBC, BS-TBS “Hodo,” Bloomberg TV, CBS News, Channel News Asia, Economist, Foreign Policy, Forbes, Fortune, Newsweek, Public Radio International, Scientific American, US News and World Report, and the Wall Street Journal. Additionally, Nir is a two-time TEDx speaker, discussing the role of emerging technologies, such as AI (https://www.youtube.com/watch?v=W6da0kEfBsY) and blockchain (https://www.youtube.com/watch?v=Wdo_Jlov9R4), in alleviating poverty. Beyond academia, Nir has consulted for organizations such as the Asian Development Bank, the Commonwealth Secretariat, the World Bank, The Global Initiative Against Transnational Organized Crime (GI-TOC), various UN agencies, and private companies.

• Future: Web3 and the Metaverse – Are these concepts truly revolutionary, or are they overhyped trends?

Prof. Kshetri: The metaverse has already become an integral part of the lives of millions, sparking new ways of interaction. With gaming platforms like Roblox attracting over 85 million daily active users in late 2024, it’s clear that the metaverse has substantial reach. While some companies have scaled back their metaverse initiatives, others like Meta view AR, VR, and metaverse investments as long-term commitments. This indicates that the metaverse, alongside Web3, is not just a trend but a potentially revolutionary shift in digital interaction. Web3, too, continues to gain traction, with $5.4 billion in funding in 2024’s first 10 months (https://cointelegraph.com/news/vc-roundup-web3-funding-5-4-billion-2024), demonstrating ongoing interest and potential in this space.

 

• Future: Blockchain for Entrepreneurs – How can blockchain technology empower vulnerable entrepreneurial ecosystems?

Prof. Kshetri: Blockchain technology can significantly empower vulnerable entrepreneurial ecosystems by enhancing access to resources, enabling secure transactions, and offering more stable property rights systems. For marginalized populations, blockchain’s ability to facilitate borrowing or selling undocumented resources can unlock new opportunities. However, the risks associated with entrepreneurial failure, such as the loss of collateralized property, must be addressed. Moreover, blockchain’s potential to lower remittance transaction costs can benefit communities in regions with high remittance flows, aiding economic stability and supporting entrepreneurial ventures in vulnerable ecosystems.

 

• Future: AI for the Bottom Four Billion – What are the biggest challenges in making AI and blockchain accessible to the world’s poorest populations?

 Prof. Kshetri: Emerging technologies such as ChatGPT and blockchain present significant opportunities for the Global South, offering potential for economic growth, enhanced transparency, and improved access to services. However, challenges such as infrastructure limitations, skill gaps, and regulatory barriers can impede their full potential. Blockchain, for example, has the ability to increase trust in transactions and reduce corruption, but its implementation is often delayed due to the lack of technical expertise and appropriate policies. Similarly, AI tools like ChatGPT could revolutionize sectors such as education and healthcare, but their successful adoption relies on overcoming digital literacy issues, ensuring equitable access, and fostering a supportive regulatory environment. The ability of the Global South to effectively harness these technologies depends on overcoming these hurdles, which can ultimately shape the region’s future economic and social development.

• Future: The Ethics of Generative AI – Should developing economies embrace ChatGPT and similar tools, or are they potential threats?

Prof. Kshetri: The utilization of generative AI (GAI) like ChatGPT in the Global South presents both opportunities and risks. On the one hand, GAI holds significant promise for enhancing accessibility to information, improving healthcare services, and boosting business operations, especially in sectors like agriculture and healthcare. By supporting entrepreneurial activities and improving functions such as marketing, operations, human resources, and regulatory compliance, GAI can contribute to overall economic growth. However, there are challenges, such as the potential for exploitation through manipulation and propaganda and concerns about suboptimal model performance due to limited training datasets from the Global South. To fully unlock the benefits of GAI, it is essential to develop models in local languages and incorporate diverse, region-specific datasets to improve accuracy and relevance. Thus, while threats exist, the potential benefits of GAI outweigh these risks, provided the models are tailored to the local context.

China ranks among the top countries in AI development but faces significant challenges in the generative AI (GAI) space.

 

• Future: China vs. the U.S. in AI – Can China catch up to the U.S. in generative AI, or will the technological gap widen?

Prof. Kshetri: China ranks among the top countries in AI development but faces significant challenges in the generative AI (GAI) space. Despite efforts by public and private companies, China lags behind the U.S. in terms of computational power and access to advanced GPUs, crucial for training large language models (LLMs). U.S. sanctions have exacerbated this gap, further limiting access to essential semiconductor chips. Additionally, regulatory and censorship barriers drive up development costs for Chinese GAI companies, making it harder to achieve the same cost advantages seen in other sectors. Given these constraints, China should focus on improving the quality of its LLMs rather than competing on quantity, though this will require overcoming significant technological and regulatory hurdles.

 

• Future: Deepfakes & Misinformation – What are the economic and societal risks posed by AI-generated deepfakes?

Prof. Kshetri: The rapid advancement of deepfake technology has led to its increasing use in various cybercrimes, causing significant economic and social harm. Cybercriminals exploit deepfakes for financial gain, such as in scams and identity theft, while also using them for social manipulation, harassment, and even disinformation campaigns that threaten democratic processes. On the social front, deepfakes have exacerbated issues like gender-based violence, with women and girls being particularly targeted through abusive content. The costs associated with deepfakes are not just financial but also psychological, as offenders are driven by both extrinsic rewards, such as monetary gain, and intrinsic motivations like enjoyment or challenge. The low investment required to create deepfakes has made these activities more accessible, posing a growing threat to both individuals and organizations.

 

• Future: Blockchain in the Global South – What are the key opportunities and challenges businesses face in adopting blockchain in developing nations?

Prof. Kshetri: Blockchain technology has significant potential to revolutionize businesses in the Global South (GS) by improving supply chain management, enhancing transparency, reducing transaction costs, and providing access to global markets. It can offer innovative solutions to address inefficiencies and corruption, especially in sectors such as agriculture, healthcare, and finance. However, several barriers hinder its widespread adoption, including limited technological infrastructure, high initial implementation costs, and a lack of technical expertise. Additionally, regulatory uncertainty, unclear legal frameworks, and resistance from traditional institutions can create obstacles. Concerns over data privacy, security, and inadequate access to electricity and internet connectivity in many GS regions further complicate the scalability of blockchain solutions.

 

• Future: The Metaverse & Sustainability – Does the metaverse contribute to environmental sustainability, or does it pose new risks?

Prof. Kshetri: The metaverse has the potential to significantly reduce pollution through various mechanisms. By eliminating activities such as commuting and face-to-face meetings, it can reduce CO2 emissions, particularly from the transportation sector, which accounts for 25% of global emissions. Additionally, technologies like digital twins allow companies to simulate real-world scenarios and optimize energy consumption, as seen in the case of Hellenic, which reduced energy consumption by over 9% using the industrial metaverse. Furthermore, the metaverse offers opportunities for less materialistic consumption by encouraging virtual goods and experiences instead of physical products. However, the metaverse also presents environmental challenges, including the energy-intensive nature of AI tools, data storage, and the potential e-waste generated by the hardware used to access the metaverse. These issues underscore the need for sustainable development in the metaverse’s growth.

 

 

• Future: AI in Education – How do you see AI reshaping the future of education and collaboration between teachers and technology?

Prof. Kshetri: Generative AI tools, such as ChatGPT, can significantly support teaching and learning by enhancing various aspects of the educational process. These tools assist teachers in tasks such as course planning, creating lesson outlines, developing quizzes, and personalizing content for students based on their individual learning styles and needs. For example, AI can help in generating tailored learning materials and providing personalized feedback, which improves student engagement and performance. However, while these tools can automate certain tasks and enhance efficiency, they are not intended to replace human teachers. Instead, AI tools serve as a supplement, augmenting teachers’ abilities by streamlining repetitive administrative tasks and improving the personalization of lessons. Teachers remain essential in ensuring the accuracy, relevance, and emotional intelligence of the educational experience, as well as in providing guidance and mentorship to students.

 

• Future: Cybersecurity & AI – How can we protect privacy and mitigate cybercrime risks associated with large language models?

Prof. Kshetri: The cybercrime industry has extremely low barriers to entry, with tools like the “Aldi Bot” available for as little as $7 in underground forums, enabling criminals to launch attacks, steal passwords, and execute files remotely. More sophisticated malware tools, such as the $39 EvilExtractor and the $800 Thanos ransomware, are also accessible. The rise of large language models (LLMs) like ChatGPT has further reduced these barriers, allowing even novice cybercriminals to create malicious code, such as Trojans and ransomware, without coding expertise. LLMs also help criminals craft convincing phishing emails and conduct business email compromises. However, these models also raise privacy and security concerns, as users may unknowingly expose sensitive data, and operators may fail to protect user information, as seen in data breaches and privacy violations like the GDPR investigation in Italy. Cybersecurity experts are increasingly worried that ChatGPT and similar tools could be used by cybercriminals and nation-states for more advanced cyberattacks, amplifying existing risks in the cybercrime landscape.