by: Anish Mohammed, co-founder of Panther Protocol
December 24, 2024
To say 2024 was a pivotal year for generative AI would be an understatement. As it continues to evolve, generative AI is expected to drastically shape industries. A global survey of technology leaders ranked it as the most important technology for 2025.
The advent of powerful AI tools has made it possible for anyone with access—not just financial institutions—to analyze vast amounts of financial data. While this has op doors to innovation, it has also introduced significant risks. In environments where financial data is openly accessible, such as blockchains, malicious actors can use AI agents to extract sensitive patterns, infer identities, or exploit vulnerabilities. For example, public blockchains host over $2 trillion in non-privacy coins, exposing transaction details and creating vulnerabilities like strategy theft, market manipulation, and exploitation by MEV bots. These risks deter institutional adoption and expose users to significant privacy breaches.
Similarly, centralized financial systems (CeFi) are not immune to these risks. While ban and traditional financial institutions typically have internal safeguards to protect sensitive data, the widespread availability of AI tools increases the stakes. Social engineering attacks, such as phishing, now account for 33% of data breaches and cost organizations an average of $1.4 million per incident. In 2023, these attacks escalated significantly, with over 324,000 cryptocurrency users falling victim to phishing scams, resulting in approximately $295 million in losses. This surge highlights the growing sophistication of such threats and the urgent need for stronger defenses.
Raising the Stakes: Why Privacy Matters More Than Ever
Based on the predictions, technology leaders could face significant new challenges due to the growing impact of artificial intelligence.
“It is clear that no matter where we go, we cannot avoid the impact of AI,” said Daryl Plumer, distinguished vice president analyst, chief of research at Gartner. “AI is evolving as human use of AI evolves. Before we reach the point where humans can no longer keep up, we must embrace how much better AI can make us.”
source: aibusiness
