What are AI agents and Why Should You Care?
January 21, 2025
Whether you attended one of the many crypto conferences or simply had a conversation with a fellow crypto degen, one of the emerging topics of 2024 was the intersection of AI and crypto, and in particular, AI agents.
The emergence of AI agents reflects a rising demand across industries for customisable AI solutions that can intelligently execute specific tasks.
In 2024, we witnessed a range of AI agent experiments, including the spectacular case of Goatseus Maximum ($GOAT), a memecoin that unexpectedly surged to over $1 billion in market capitalisation due to the innovative use of AI agents.
What are AI agents?
AI agents are autonomous self-operating programs designed to perform specific tasks. They can analyse information, predict outcomes and execute tasks on behalf of the user. Furthermore, AI agents have the capability to make decisions, learn over time and continuously improve using machine learning.
What is the difference between a Bot and an AI agent?
While often compared to traditional bots, AI agents exhibit key distinctions. They possess the ability to learn and improve independently, requiring minimal human intervention, and can even interact with other AI agents too.
AI agents are therefore more advanced than traditional bots because they are autonomous programs capable of performing tasks independently and on behalf of the user. AI agents set their own rules without having every parameter dictated to them by a human.
How does an AI agent work?
AI agents operate based on 3 fundamental principles:
- Observation
- Processing
- Action
An AI agent gathers data (such as real-time market data or blockchain transactions), uses advanced algorithms and machine learning to analyse that data, and then executes tasks based on this analysis and predefined goals – all with little to no human interaction.
How do AI agents and Crypto intersect?
Blockchains provide the ideal environment for AI agent autonomy, enabling them to seamlessly seed wallets, execute transactions, and transfer funds – capabilities largely unfeasible within traditional finance (TradFi).
What is an example of an AI agent?
The flagship AI agent is Terminal of Truths (ToT) which was created by AI researcher Andy Ayrey in July 2024. Zerebro is another example of an AI agent which creates unique digital art.
What are the trends to look for in 2025?
Tools for creating AI agents will become more accessible, and so agent-to-agent and human-to-agent interactions will multiply.
The integration of AI agents will usher in a new era of sophisticated DeFi tools. Capabilities like identifying portfolio weaknesses and auditing smart contracts for vulnerabilities will become increasingly commonplace.
AI agents will dominate on-chain financial activity. Developers will continue to build AI agents capable of optimising trades, managing wallets and automating trading strategies and so the infrastructure of the financial crypto industry will become much more autonomous.
Agent-led ecosystems are also forecast to reshape gaming and entertainment. AI agents can participate in games and manage assets on behalf of their users.
AI agents are poised to revolutionise the crypto landscape. Their autonomous nature, coupled with blockchain’s decentralised environment, unlocks unprecedented possibilities.
From automating trades and managing portfolios to creating novel financial instruments and democratising Web3 access, the integration of AI agents promises to democratise Web3 and make it more user-friendly and drive broader adoption.
The comments, opinions, and analyses expressed in this article are for informational purposes only, and it should not be referenced as Financial Advice.
