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Anil Dukkipatty
Anil Dukkipatty

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The AI Age of NFTs: Deep Dive

2021 saw a massive rise in the adoption of NFTs and since then, we’ve witnessed its continuous growth and many new advancements that added to its use cases. While digital assets have already become fairly mainstream, there’s no doubt that we’ve just touched upon their actual potential and that they can certainly evolve into more disruptive tech with the advancement of technology.

AI has been here for a while now. However, with ChatGPT & OpenAI going viral - the discussion around the use of AI in the web3 space, especially NFTs has once again caught fire. Many are of the opinion that in order to advance the current state of NFTs, artificial intelligence comes out as one of the most promising solution, especially at a time when it's progressing exponentially.

So, what does AI has to do with NFTs?
What role does AI play in the NFT Space?
Are there any benefits or potential risks involved with using Artificial Intelligence in the NFT space?

These are some of the questions that we’ll be looking into & (possibly answer) in this blog. Allow us to elaborate.

The Role of AI in the NFT Space

We all know the first generation of NFTs were static and there was a lot of debate around whether they held any actual utilities. Considering that, several argue - AI can have a colossal impact on the next wave of NFTs as they must go from simple JPEG images to smart and intelligent collectables. Generative art is one such example where users can batch-create NFTs by using AI tools like NightCafe.

However, the use cases go far beyond that:

  • AI when converged with NFTs can let them evolve on their own and program smart contracts with dynamic elements as a result of their self-learning ability.
  • It would also be safe to envision NFTs explaining the inspiration behind why they evolved as a specific art.
  • We could also experience NFTs that could evolve as per our mood, feelings, and based on our conversations with them.
  • AI can also make the NFT marketplace smarter and more intuitive which may attract new customers and increase sales.

The role of artificial intelligence (AI) in non-fungible tokens (NFTs) can also vary depending on the specific application. Some other possible ways in which AI can be used in conjunction with NFTs include:

  • Generating unique digital content: AI can be used to create unique pieces of art, music, or other digital media that are represented by NFTs. For example, an artist could use an AI model to generate a series of unique paintings, and then sell NFTs representing ownership of each painting.
  • Creating interactive experiences: NFTs can be used to represent ownership of interactive experiences that use AI to generate unique content on demand. For example, an NFT could represent ownership of a virtual reality experience that uses AI to generate unique landscapes or characters each time it is accessed.
  • Verifying the authenticity of NFTs: AI can be used to help verify the authenticity of NFTs by analysing the content they represent and comparing it to other known works. This can help prevent the sale of counterfeit NFTs and increase confidence in the NFT market.

While these may sound futuristic, there are already projects who are bringing such imaginative visions to life. Let’s take a look at a few of them.


Fuzzle, for example, is an AI-powered NFT that can engage around topics such as crypto, life, dating, religion, and so on. Not only so, but you can also play games with your NFT and create rare stories using AI.

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Another project called Alethea AI created the first intelligent NFT (iNFT), dubbed Alice, in 2021 and sold it for a massive $478,800. Alethea AI uses blockchain and AI technology to allow users to infuse AI animations and voice elements into their NFTs. What’s more interesting about Alethea is the fact that it lets users create, train, and earn from their iNFTs in Noah’s Ark, the world’s first intelligent metaverse.

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Altered State Machine (ASM) is yet another budding platform that allows creators to infuse artificial intelligence into their existing NFTs. If you’re a soccer fan, then there are good chances that you might have already heard about their recent collaboration with FIFA to create an AI-powered metaverse-focused game called AI League. The best part about this platform is ASM Brains and Non-Fungible Intelligence (NFI) that can inject life into your digital avatars/NFTs.

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Benefits of Using AI for NFTs

AI will certainly beef up the non-fungible tokens and the use cases we may experience with their intersection are unbelievable. The simple proof of ownership of NFTs will turn into intelligent proprietary software that'll help everyone - from NFT creators to consumers - get the most out of it.

As NFTs already reside on one of the safest techs ever (blockchain), integrating AI with NFTs will further expand it in dealing with cybersecurity attacks. AI when linked with NFTs will also let users see more specific content on the internet as per their interaction with the digital asset sitting in their wallet.

Brands can use such AI-powered NFTs for various purposes such as:

  • Attracting potential customers or audience
  • Innovative and new ways to produce and disseminate content
  • Exploring new trends in the industry
  • Keeping the community hooked with novel ways of interacting with their assets
  • Increased efficiency and accuracy in verifying authenticity
  • Ability to create unique, one-of-a-kind NFTs through AI-generated content
  • Enhanced user experience through AI-powered marketplaces and gaming environments. And many more.

Challenges and Ethical Concerns

As is with everything, AI into NFTs also stir up some ethical concerns & challenges that are worth noting:

  • Lack of transparency and understanding about how AI-generated NFTs are created
  • Potential for misuse or exploitation of AI in the NFT market
  • Ethical concerns surrounding the creation and ownership of AI-generated art and collectibles
  • Possibly with time, we’ll have a clearer resolution to all of these. However, it definitely does not act as a free pass to totally negate the use of AI.

In Closing

Looking at the use cases and the capabilities of both technologies (AI & NFTs), it might not be amiss to remark that the future looks promising once they both intertwine closely. AI still has a long way to go, however, it can radically change the entire NFT industry once fully matured.

If you seek a way to infuse dynamic elements into your digital assets, then it has never been easier with our simulator that allows changing the properties, images, and automating your NFTs in a few clicks. Try it for free here.

For more recent updates about NFTs and their convergence with AI, follow us from the links below:

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