- Smart contracts can adapt to market changes or user behavior intelligently.

The most important potential uses

• Investment portfolio management

The contract interacts with artificial intelligence to automatically rebalance assets based on market performance.

• Smart lending systems

Instead of fixed terms, the contract can assess risks based on the borrower's behavior and data.

• Flexible DAO governance

AI can analyze community interaction and suggest more effective decisions.

Challenges facing integration

- Reliability: Can we trust a decision made by AI in an irreversible environment?

- Transparency: Most AI algorithms are still a 'black box'.

- Regulation: Do regulatory bodies accept contracts that make autonomous decisions?

Emerging projects worth following

- Gensyn.ai: Infrastructure for training large models through a blockchain network.

- Numeraire: A project that uses AI for financial forecasting and links it to the NMR token.

- AIOZ Network: A combination of AI and Web3 to accelerate decentralized networks.

Summary

Integrating AI with smart contracts is not just a futuristic idea; it is an active and accelerating trend that is making a real transformation in how decentralized applications are built. From trading to governance, from lending to supply — this integration could be the new fuel for the next generation of DeFi and Web3.