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Generative AI Could Offer a US$60 Billion Opportunity to the Supply Chain, But Stakeholders Struggle to Define a Strong Revenue Model

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Generative AI’s supply chain money tree cannot last forever and sooner rather than later they must look to build strong and differentiated revenue strategies to offset their ever-growing operational cost burden

LONDON, Aug. 2, 2023 /PRNewswire/ — Generative Artificial Intelligence (AI) is not a new technology, but its democratization was triggered by the emergence of powerful public APIs, notably ChatGPT. Since then, the consumer market has experienced tremendous traffic with high usage. In the wake of this demand, the supply chain has exploded with significant activity across each layer (R&D, hardware, foundation model, ML service tools, data services, applications, and ethics/regulation), trying to build access to commercial opportunities in the enterprise segment. According to a new report from global technology intelligence firm ABI Research, this market will rapidly expand by 2030 at a CAGR of 162%, offering nearly US$60 billion in revenue for supply chain stakeholders.

“Capturing the enterprise commercial opportunity is essential as stakeholders continue to struggle beneath a significant cost crisis driven by the consumer segment. Building data sets, deploying infrastructure, training, and running large language models like Claude, LLaMa, Titan, or GPT-3.5 has a sizeable cost burden that will be challenging to reduce,” explains Reece Hayden, Senior Analyst at ABI Research. “Popular public applications like ChatGPT cost at least US$500,000 per day to operate. That cost will only rise as usage increases. So far, stakeholders have relied on external funding to support free access through venture capital investment or internal subsidies. This cannot continue forever, and stakeholders must identify strategies to start generating revenue in the consumer and enterprise segments.”

Given their high customer acquisition cost, stakeholders are primarily stuck in ‘freemium revenue models that are largely unsustainable in the consumer segment. “These models are also mostly unfit for purpose in the enterprise market,” Hayden points out. “Although moving on from this model will be challenging, the good thing is that plenty of monetization opportunities have applicability across the supply chain.” Stakeholders can look to implement advertising models like those used by search engines, revenue share models which have proven successful in adjacent areas like cloud marketplaces or even look to productize open-sourced LLMs with closed-source enterprise functions. But it is vital that stakeholders carefully align their capabilities with a revenue model as some may not be fit for purpose.

The most successful revenue generation strategies over the foreseeable future will look to support enterprise adoption directly. Most enterprises lack Machine Learning (ML) skills/tools, operational expertise, and strategic legal/governance frameworks to support generative AI development and implementation effectively. For this reason, Hayden recommends, “Supply chain stakeholders should look to provide consultancy services or build low/no-code platforms that support development, deployment, fine-tuning, optimization, operational change management, and day two operations.” Business consultants like Bain, McKinsey, and BCG have joined system integrator incumbents through partnerships with foundation model owners like OpenAI. Moving forward, the enterprise service part of the supply chain could be worth more than US$15 billion by 2030.

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Other factors are at play in this market, most notably the increasing focus on data privacy, which will trigger increasing interest in data service providers. Enforcement of copyright regulation for training data and enterprise demand for fine-tuning will create sustained interest in companies able to curate enterprise datasets or generate synthetic databases. “Recent fundraising rounds indicate more significant interest in ML data companies. For example, Mostly AI, a synthetic data generator, has just raised US$25 million, while Snorkel AI recently raised US$85 million at a valuation of US$1 billion, Hayden says.

“The supply chain has plenty of opportunities to offset their cost burden with revenue models, and some are already looking to do so,” concludes Hayden. “Beyond simply identifying new revenue models, stakeholders should look to build strong partnerships across the supply chain, build products/services that target B2B deployment and scale, and develop a leading position in responsible AI development.”

These findings are from ABI Research’s Generative AI: Identifying Technology Supply Side Revenue Opportunities application analysis report. This report is part of the company’s AI and Machine Learning research service, which includes research, data, and ABI Insights. Based on extensive primary interviews, Application Analysis reports present an in-depth analysis of key market trends and factors for a specific application, which could focus on an individual market or geography.

About ABI Research

ABI Research is a global technology intelligence firm delivering actionable research and strategic guidance to technology leaders, innovators, and decision makers around the world. Our research focuses on the transformative technologies that are dramatically reshaping industries, economies, and workforces today.

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ABI Research是一家国际科技情报公司,为全球科技领袖、创新人士和决策者提供实用的市场研究和战略性指导。我们密切关注一切为各行各业、全球经济和劳动市场带来颠覆性变革的创新与技术。

For more information about ABI Research’s services, contact us at +1.516.624.2500 in the Americas, +44.203.326.0140 in Europe, +65.6592.0290 in Asia-Pacific, or visit www.abiresearch.com.

Contact Info

Global
Deborah Petrara 
Tel: +1.516.624.2558
[email protected]

Logo – https://mma.prnewswire.com/media/1471031/ABI_Research_Logo.jpg

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Ethereum ETFs Aren’t Blockchain But Is A Revolutionary Tech: Top 6 Amazing Reasons To Invest In Them

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The financial landscape is rapidly evolving, with the integration of blockchain technology and cryptocurrencies becoming more prominent. Among these, Ethereum ETFs (Exchange-Traded Funds) have emerged as a significant investment vehicle, offering exposure to the Ethereum blockchain’s native cryptocurrency, Ether (ETH), without requiring direct ownership. However, it’s crucial to understand that Ethereum ETFs are distinct from the blockchain itself and serve different purposes in the investment world.

Understanding Ethereum and ETFs

Ethereum: A decentralized platform that enables the creation and execution of smart contracts and decentralized applications (dApps). It operates using its cryptocurrency, Ether (ETH), which fuels the network.

ETF (Exchange-Traded Fund): A type of investment fund that holds a collection of assets and is traded on stock exchanges. ETFs can include various asset classes, such as stocks, commodities, or bonds.

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Ethereum ETFs: The Intersection of Traditional Finance and Cryptocurrency

An Ethereum ETF provides a way for investors to gain exposure to the price movements of Ether without directly purchasing the cryptocurrency. This is achieved through an ETF structure, where the fund holds assets linked to the value of Ether, and investors can buy shares of the ETF on traditional stock exchanges.

Key Features of Ethereum ETFs:

  1. Indirect Exposure: Investors gain exposure to Ether’s price changes without needing to manage or store the cryptocurrency themselves.
  2. Regulatory Compliance: Unlike the relatively unregulated cryptocurrency market, ETFs operate under the oversight of financial regulators, offering a layer of investor protection.
  3. Accessibility: Ethereum ETFs are available through traditional brokerage platforms, making them accessible to a broader range of investors.

Why Invest in an Ethereum ETF?

  1. Diversification: Including an Ethereum ETF in a portfolio can provide exposure to the cryptocurrency market, potentially enhancing diversification beyond traditional assets.
  2. Convenience and Familiarity: ETFs are a familiar investment product, simplifying the process of investing in cryptocurrencies.
  3. Professional Management: ETF managers handle the investment decisions, including the buying and selling of assets, which can be advantageous for those less familiar with the cryptocurrency space.
  4. Regulatory Oversight: ETFs are subject to regulatory scrutiny, potentially offering more safety and transparency compared to direct cryptocurrency investments.
  5. Potential for Growth: As the cryptocurrency market grows, ETFs linked to assets like Ether may benefit from rising prices.

Key Differences Between Ethereum and Ethereum ETFs

While both are related to the Ethereum blockchain, Ethereum itself and Ethereum ETFs represent different forms of investment:

  • Ethereum (ETH):
    • Direct ownership of the cryptocurrency.
    • Full exposure to Ethereum’s features, including staking and network participation.
    • Traded on cryptocurrency exchanges.
    • Highly volatile and largely unregulated.
  • Ethereum ETF:
    • Indirect exposure through shares representing Ether’s value.
    • Traded on traditional stock exchanges under regulatory oversight.
    • Offers a more stable and familiar investment structure.
    • Typically lower volatility compared to direct cryptocurrency ownership.

Future Considerations for Ethereum ETFs

The approval and launch of Ethereum ETFs mark a significant milestone in bringing cryptocurrencies closer to mainstream finance. They offer a convenient and regulated means for investors to gain exposure to the growing digital assets market. However, they also come with limitations, such as not allowing direct participation in the Ethereum ecosystem’s innovations, like dApps and smart contracts.

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As the market evolves, we may see more sophisticated financial products that better capture the full potential of the Ethereum ecosystem. For now, Ethereum ETFs provide a balanced option for those interested in cryptocurrency exposure within the framework of traditional finance.

In conclusion, while Ethereum ETFs offer a gateway into the world of digital assets, they should be viewed as complementary to, rather than a replacement for, direct investment in the underlying blockchain technologies. Investors should carefully consider their investment goals, risk tolerance, and the unique attributes of both Ethereum and Ethereum ETFs when making investment decisions.

Source: blockchainmagazine.net

The post Ethereum ETFs Aren’t Blockchain But Is A Revolutionary Tech: Top 6 Amazing Reasons To Invest In Them appeared first on HIPTHER Alerts.

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Nexo Reaffirms Commitment to Data Protection with SOC 3 and SOC 2 Compliance

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Nexo, a leading institution in the digital assets industry, has reinforced its commitment to data security by renewing its SOC 2 Type 2 audit and attaining a new SOC 3 Type 2 assessment without any exceptions. This rigorous audit process, conducted by A-LIGN, a respected independent auditor specializing in security compliance, confirms Nexo’s adherence to stringent Trust Service Criteria for Security and Confidentiality.

Key Achievements and Certifications

  1. SOC 2 and SOC 3 Compliance:
    • SOC 2 Type 2: This audit evaluates and reports on the effectiveness of an organization’s controls over data security, particularly focusing on the confidentiality, integrity, and availability of systems and data.
    • SOC 3 Type 2: This public-facing report provides a summary of SOC 2 findings, offering assurance to customers and stakeholders about the robustness of Nexo’s data security practices.
  2. Additional Trust Service Criteria:
    • Nexo expanded the scope of these audits to include Confidentiality, showcasing a deep commitment to protecting user data.
  3. Security Certifications:
    • The company also adheres to the CCSS Level 3 Cryptocurrency Security Standard, and holds ISO 27001, ISO 27017, and ISO 27018 certifications, awarded by RINA. These certifications are benchmarks for security management and data privacy.
  4. CSA STAR Level 1 Certification:
    • This certification demonstrates Nexo’s adherence to best practices in cloud security, further solidifying its position as a trusted partner in the digital assets sector.

Impact on Customers and Industry Standards

Nexo’s rigorous approach to data protection and compliance sets a high standard in the digital assets industry. By achieving these certifications, Nexo provides its over 7 million users across more than 200 jurisdictions with confidence in the security of their data. These achievements not only emphasize the company’s dedication to maintaining top-tier security standards but also highlight its proactive stance in fostering trust and transparency in digital asset management.

Nexo’s Broader Mission

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As a premier institution for digital assets, Nexo offers a comprehensive suite of services, including advanced trading solutions, liquidity aggregation, and tax-efficient credit lines backed by digital assets. Since its inception, the company has processed over $130 billion, showcasing its significant impact and reliability in the global market.

In summary, Nexo’s successful completion of SOC 2 and SOC 3 audits, along with its comprehensive suite of certifications, underscores its commitment to the highest standards of data security and operational integrity. This dedication positions Nexo as a leader in the digital assets space, offering unparalleled security and peace of mind to its users.

Source: blockchainreporter.net

The post Nexo Reaffirms Commitment to Data Protection with SOC 3 and SOC 2 Compliance appeared first on HIPTHER Alerts.

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Marshall Becomes First US Senator to Walk from Controversial Crypto Bill He Co-Sponsored

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Republican Senator Roger Marshall has withdrawn his support for the Digital Asset Anti-Money Laundering Act of 2023, a controversial bill he initially co-sponsored with Senator Elizabeth Warren and others. This bill, reintroduced in the Senate on July 27, 2023, aimed to bring the cryptocurrency industry into alignment with existing anti-money laundering (AML) and counter-terrorism financing (CTF) laws.

Key Provisions of the Bill

The legislation proposed stringent regulations on digital asset providers, including unhosted wallet providers, miners, and validators, by classifying them as financial institutions under the Bank Secrecy Act (BSA). It mandated these entities to adhere to BSA compliance requirements, which include extensive reporting and monitoring responsibilities. Additionally, the bill called for the Financial Crimes Enforcement Network (FinCEN) to establish regulations for reporting significant foreign digital asset holdings and to create compliance measures to address risks associated with anonymity-enhancing technologies.

Senator Marshall’s Shift

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Marshall’s withdrawal from the bill comes as a surprise, particularly given his earlier criticisms of cryptocurrencies, which he has described as a “threat to national security.” This includes concerns over stablecoins like Tether potentially facilitating illegal activities and circumventing U.S. sanctions. Despite his earlier stance, Marshall’s departure from the legislation suggests a reconsideration of the bill’s implications or an alignment with broader political and industry perspectives on cryptocurrency regulation. His office has not provided a comment on the reasons for his withdrawal.

Political and Industry Reactions

The bill had garnered significant bipartisan support, with 18 co-sponsors, reflecting a broader concern in Congress over regulating the rapidly growing cryptocurrency market. However, it has also faced criticism for potentially imposing impractical compliance burdens that could stifle innovation and push crypto activities offshore. Critics argue that the bill’s stringent requirements could inadvertently drive users toward unregulated platforms, thereby undermining its intent to enhance security and regulatory oversight.

Broader Context

The withdrawal comes at a time when cryptocurrency regulation is a highly contentious issue in U.S. politics. Former President Donald Trump has promised to relax crypto regulations if elected, contrasting with the current administration’s more stringent stance. Under President Joe Biden, the Securities and Exchange Commission (SEC) and other regulatory bodies, led by figures like Gary Gensler, have taken a more rigorous approach to regulating the sector, which has drawn criticism for being overly restrictive.

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Senator Marshall’s decision to step back from the Digital Asset Anti-Money Laundering Act reflects the complex and evolving nature of cryptocurrency regulation in the U.S. While the bill seeks to bring greater oversight and security to the crypto industry, it also raises concerns about regulatory overreach and its potential negative impact on innovation and privacy. As the debate continues, the U.S. legislative and regulatory landscape for cryptocurrencies remains in flux, balancing the need for security with the desire to foster technological innovation.

Source: decrypt.co

The post Marshall Becomes First US Senator to Walk from Controversial Crypto Bill He Co-Sponsored appeared first on HIPTHER Alerts.

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