Santiago R. Santos, a prominent figure in the crypto space, recently shared his thoughts on the differing impacts of artificial intelligence (AI) and cryptocurrency on business efficiency. In a tweet that has sparked considerable discussion, Santos highlighted a critical distinction between the two technologies: while AI focuses on removing repeatable friction, crypto aims to eliminate systemic friction. This insight is particularly relevant for businesses looking to leverage technology for growth and efficiency.

The Power of AI in Business

AI has become a buzzword in the business world, often associated with automation and efficiency. Santos acknowledges this trend, noting that "everyone understands and is focused on leveraging AI to make businesses more efficient." AI tools, such as Perplexity and ChatGPT, are transforming workflows by handling repetitive tasks that once required significant human effort. For instance, Santos mentions how AI has reduced the need for analysts in his work, allowing him to accomplish tasks that would have taken a team of three analysts a month in just a day.

This efficiency is achieved by automating processes that are predictable and repetitive. However, Santos points out a cautionary note about the rapid pace of AI innovation, describing it as "chaotic and fast." This suggests that while AI can be a powerful tool, its rapid evolution may pose challenges for businesses trying to keep up.

Crypto's Role in Removing Systemic Friction

In contrast to AI, Santos argues that crypto's impact on business is often undervalued. He believes that "the P&L impact crypto can have on some businesses is more concrete and material than AI because crypto removes systemic friction." Systemic friction refers to the broader, structural inefficiencies within business operations, such as intermediaries, trust issues, and regulatory hurdles. Crypto, with its decentralized nature, offers a solution by enabling peer-to-peer transactions and reducing the need for third parties.

For example, blockchain technology, which underpins crypto, can streamline supply chains, enhance transparency, and build trust among parties. Santos' perspective aligns with the idea that crypto can disrupt traditional business models by addressing these systemic issues more effectively than AI, which primarily tackles operational inefficiencies.

A Comparative Analysis

To illustrate the difference, consider a business scenario where both AI and crypto are applied. AI might optimize internal processes, such as data analysis or customer service, by automating repetitive tasks. On the other hand, crypto could transform the business's interaction with external stakeholders, such as suppliers or customers, by facilitating secure, transparent transactions without intermediaries.

Santos' tweet emphasizes that while AI is widely adopted for its immediate efficiency gains, the long-term, transformative potential of crypto is often overlooked. He suggests that businesses focusing on both technologies could achieve a competitive edge, as joao points out in a response: "Companies that grok both are gonna absolutely demolish everyone else."

Implications for Blockchain Practitioners

For those in the blockchain space, Santos' insights are a call to action. The tweet underscores the importance of advocating for crypto's role in business transformation, especially in an era dominated by AI discussions. Practitioners can leverage this perspective to highlight how crypto can address systemic issues that AI cannot, such as removing friction in financial transactions or enhancing trust in digital identities.

Moreover, the conversation around Santos' tweet reveals a growing recognition of the complementary nature of AI and crypto. As Matt notes, "well said," indicating a broader acceptance of these ideas within the community. This synergy could lead to innovative solutions that combine the strengths of both technologies, driving further adoption and efficiency in business operations.

Conclusion

Santiago R. Santos' tweet offers a nuanced perspective on the roles of AI and crypto in business efficiency. While AI excels at removing repeatable friction, crypto's ability to eliminate systemic friction holds greater long-term potential for transforming business operations. For blockchain practitioners and businesses alike, understanding and leveraging these differences could be key to staying ahead in a rapidly evolving technological landscape.

As the discussion continues, it's clear that the intersection of AI and crypto will shape the future of business efficiency. Whether you're a seasoned practitioner or new to the space, keeping an eye on these developments is crucial for navigating the challenges and opportunities ahead.