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Kevin O’Leary Envisions AI and Blockchain Revolutionizing Retail Transactions

  • Kevin O’Leary predicts AI will automate retail purchases, with blockchain handling payments.
  • O’Leary imagines a future where AI handles everything from ordering a coffee to paying at retailers.
  • Current blockchain solutions like Ethereum face scalability issues, according to O’Leary.
  • Directed Acyclic Graphs (DAGs) could solve transaction bottlenecks, with projects like Hedera and Nano leading the way.
  • O’Leary is searching for a scalable solution that could handle millions of retail transactions daily.

Kevin O’Leary, the venture capitalist and co-host of Shark Tank, envisions a future where AI and blockchain work together to revolutionize retail transactions. In a recent post on X (formerly Twitter), O’Leary shared his belief that AI will eventually automate most retail purchases, while blockchain will be used to handle the payments, creating a seamless and efficient experience for consumers.

He painted a picture of a future scenario:

“You simply talk to your phone and say, ‘I want a tall, low-fat latte, please. I’m going to be there in 90 seconds. That’s it.'”
“The AI analyzes your location, identifies the nearest retailer, and then uses blockchain to complete the payment for your latte.”

According to O’Leary, in this scenario, AI would not only take the order but also ensure that the transaction is processed through blockchain’s digital payment systems. He emphasized that the AI would already know who you are, linking your name to your order as you walk into the store.

While O’Leary’s vision of AI-driven retail transactions is compelling, he acknowledged a significant hurdle: scalability. Current blockchain systems, like Ethereum, face challenges when handling millions of transactions simultaneously. Ethereum’s design orders transactions linearly, causing delays and high fees during peak demand. O’Leary compared it to a “toll road” for transaction authentication, where bottlenecks happen when too many vehicles (transactions) are trying to pass through at once.

O’Leary stressed the need for a better solution that can handle these millions of transactions independently without causing congestion or high costs. He pointed to a promising alternative: Directed Acyclic Graphs (DAGs). Unlike traditional blockchains, DAG-based systems can process transactions in parallel, without lining them up in blocks, which makes them far more scalable.

Source: Kevin O’Leary aka Mr. Wonderful on X

Projects like Hedera and Nano are already using DAG architecture to process transactions more efficiently, but they have yet to capture the market share of larger blockchains like Ethereum and Solana. O’Leary is particularly interested in finding the first project that can scale these technologies to handle real-world retail transaction volumes.

“There’s a massive opportunity for a company to crack this problem,” O’Leary said, adding that retailers like Walmart, Target, and fast-food chains will need a solution capable of handling millions of independent transactions each day.

Interestingly, just a year ago, O’Leary was critical of consumers who spent money on small indulgences like coffee and sandwiches, arguing they could prepare these items at home for much less. However, he has since evolved his view, recognizing the convenience and efficiency AI and blockchain could bring to everyday purchases.

In a related example, Kyle Okamoto, CTO of decentralized infrastructure platform Aethir, shared how agentic AI is already helping individuals with daily tasks. Okamoto’s wife uses an AI-powered solution that tracks grocery needs, automatically adding items like milk to her shopping list based on her buying habits. Okamoto noted that this technology could eventually be integrated with blockchain-based payment systems to complete the transaction side of this seamless experience.

Final Thought

Kevin O’Leary’s vision of combining AI with blockchain to automate and simplify retail transactions offers a glimpse into the future of commerce. While scalability remains a major challenge, solutions like DAG-based blockchains show promise in enabling the necessary transaction throughput. As AI continues to evolve and integrate with blockchain, the retail landscape may soon see a fundamental shift, making O’Leary’s predictions a reality in the not-too-distant future.

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