2025 may mark the turning point for AI, blockchain, robotics, augmented reality (AR), and virtual reality (VR) because these technologies start converging with each other, creating new avenues for industries globally. Christian Thompson, Managing Director of the Sui Foundation, says that the embedding of AI agents within blockchains will be one of the key drivers of this revolution.
Speaking at Consensus 2025 in Hong Kong, Thompson pointed out how blockchain, AI, and other advanced technologies are coming together to build “watershed moments”—turning points that could reshape the future of digital interactions, ownership, and financial systems.
A New Era of Converging Technologies
The fusion of blockchain and AI is no longer in theory—it’s happening right now. Thompson highlighted how all these developments are not occurring in silos but as part of an overall movement that encompasses:
AI-powered blockchain automation
Decentralized finance (DeFi) with AI
Blockchain-based asset ownership
AR and VR’s development in gaming and the metaverse
Robotics and AI-powered smart contracts
> “As these technologies converge, you get these watershed moments. I think we’re peering over the edge as it relates to blockchain and AI,” said Thompson.
He believes that this technological shift is happening within this market cycle, rather than being something that’s a decade away.
AI-Blockchain Integration Already Underway
While the AI-blockchain convergence is still in its early stages, some companies have already begun integrating these technologies.
Kite AI, a provider of decentralized AI infrastructure, released an AI-centric testnet on February 6, 2025, to expand blockchain automation and operational efficiency.
The 0G Foundation revealed an $88.88 million ecosystem fund on February 5, 2025, to drive projects concentrating on AI-enabled DeFi applications and autonomous AI agents (DeFAI agents).
These initiatives show that AI-enabled blockchain innovations are drawing serious investment and attention.
The Rise of AI-Powered DeFi and Payments
Aside from blockchain automation, Thompson forecasts that AI and blockchain convergence will transform financial services, especially in:
Decentralized Finance (DeFi): AI-driven DeFAI agents may facilitate entirely autonomous financial services, minimizing human involvement in lending, trading, and asset management.
Payments: With more regulatory clarity, blockchain-based payments might gain mass adoption.
> “Payments will actually start to get adopted in meaningful ways,” Thompson said, going on to note that policy clarity will spur developer interest and institutional participation.
Regulatory Clarity: The Key to Unleashing Blockchain’s Full Potential
Regulatory uncertainty has been one of the biggest hurdles to mass blockchain adoption. But Thompson is convinced that this cycle could bring major shifts.
> “On the investment side, free-up of liquidity will probably occur. You’ll see VCs, funds, and private family offices coming in and feeling confident enough to dive into the space. Once you have some regulatory clarity, you will unlock a world of investment,” he described.
With easier regulations, conventional investors who were once reluctant to invest in blockchain and Web3 ventures will feel comfortable enough entering the space, tapping into billions of potential capital.
US Crypto Regulation: A Polarizing Issue
As the US crypto regulatory environment remains in limbo, certain legislators and industry participants are clamoring for a complete revamp to ascertain that the nation continues to compete effectively in the global blockchain space.
During the Donald Trump administration, there have been increasing efforts to bring a more defined regulatory regime for crypto assets. But crypto pessimists such as US Senator Elizabeth Warren still call for stricter controls, fearing fraud, money laundering, and financial instability.
Web2 to Web3: The Next Evolution
As regulatory certainty, AI embracement, and blockchain take-up speed up, Thompson predicts that the transition from Web2 to Web3 will pick up pace.
> “From there, you’ll see this transition from Web2 to Web3; they’ll start to converge. Then you have all this experimentation, research, and development activity, generating its own flywheel effect.”
This convergence has the potential to give rise to a new age of decentralized applications (dApps) with flawless integration of AI, blockchain, and immersive technologies such as AR and VR.
Final Thoughts: The Dawn of a Technological Revolution
The AI-blockchain convergence is no longer a far-off fantasy—it’s happening today. With the growth of AI-based blockchain solutions, decentralized finance, and digital property, the next few years might be critical for Web3 innovation.
If regulatory certainty continues to enhance, venture capital firms, institutional investors, and businesses can hasten the deployment of AI-based blockchain solutions, marking a tipping point that redefines the entire digital economy.
As we progress deeper into 2025, everyone will be watching how these technologies develop and if they really live up to their potential for a more decentralized, smart, and immersive digital universe.
