Definition ∞ An AI Protocol establishes rules and procedures for artificial intelligence operations within decentralized networks. These protocols define how AI agents interact, process data, and execute functions on a blockchain or distributed ledger. They ensure transparency, verifiability, and automated governance for AI-driven applications in the digital asset space. Such systems can facilitate trustless execution of complex AI models.
Context ∞ Discussions around AI Protocols frequently center on their potential to automate decentralized finance services and create new forms of digital asset management. A key area of observation involves the development of ethical AI governance within these protocols and their integration with smart contracts. Future developments will likely focus on scalability solutions and cross-chain compatibility for AI-driven applications.