Imperial College London and AI-focused startup FluidAI announced a partnership under which they will work on “solving serious problems in the digital assets market.”
The cryptocurrency industry is currently suffering from a liquidity shortage and fragmentation, contributing to high volatility, price slippage, vulnerability to manipulation and sudden collapses, according to the press release.
FluidAI chief executive Ahmed Ismail said that addressing liquidity problems in the industry was the primary motivation for founding the company.
“Traditional financial solutions designed to aggregate the market rely on low-latency technology, so price accuracy can be achieved very quickly. In the crypto space this does not exist due to its cloud-based decentralised nature,” he explained.
He said that AI could help “eliminate latency through forecasting.”
Since 2021, University College London has been studying digital assets and AI technologies. Staff at the institution are working on a generative neural network, virtual reality and their own robots.
Earlier in May, the UK Competition and Markets Authority launched an investigation into the AI industry.
In April, Prime Minister Rishi Sunak announced the allocation of 100 million pounds ($125 million) to stimulate the development of “sovereign AI.”
In August, UK authorities announced plans to purchase chips for AI processing worth 100 million pounds (~$130 million).