Mike Novogratz Believes Blockchain Can Shield People From ‘Scary’ AI Agents

Galaxy Digital CEO Mike Novogratz has offered his opinions on the developing nexus between blockchain technology and artificial intelligence (AI). In a recent discussion on the When Shift Happens YouTube channel, Novogratz emphasized how blockchain technology may balance out AI’s centralizing influence, which he thinks could have serious detrimental effects on autonomy and privacy.

Blockchain as a Safeguard Against AI’s Risks

Novogratz expressed concern about the rapid rise of AI and its ability to centralize vast amounts of data, which he finds troubling. Drawing from the 2002 film Minority Report, he emphasized the risks posed by large-scale, centralized AI databases. He said, “I intuitively think that AI is really scary. And I go back to the Minority Report, that movie with the precogs and the pictures, and so it is one of the great centralizing forces on the planet – huge database centralized. And so the Yang to that Ying has to be blockchain.”

Although he did not provide a detailed strategy, Novogratz firmly believes that blockchain technology offers a solution to these risks. In his view, the decentralized nature of blockchain can serve as a safeguard against the potential overreach of AI systems. He stated, “And I don’t know how it works yet. I’m not smart enough. I just intuitively know there’s got to be something that protects us from Big Brother, and blockchains have that capacity.”

Novogratz also sees blockchain playing a crucial role in improving the functionality of AI-driven financial transactions. He pointed out that AI agents, which will eventually handle tasks like grocery shopping or other consumer activities, would benefit from the smoother operation of blockchain systems. He compared this to traditional payment systems like American Express or MasterCard, stating, “Your agent’s going to know what to shop for you, like groceries. Well, where’s it going to get the money? It’s going to have to go into your account, send the money. That stuff is going to operate much smoother, I think, on crypto rails than on the rails, Amex uses or MasterCard uses.”