Artificial intelligence is being hyped up to the sky, especially in the cryptocurrency circle. To be honest, AI does have the potential to improve some aspects of DeFi—such as risk management, decision-making efficiency, and transparency enhancement. But to truly make good use of this technology, we need to first understand what it can and cannot do.

Let's clarify two concepts first. DeFi is a decentralized financial ecosystem built on blockchain, including lending protocols, liquidity provision, and various DEX trading platforms. AI, in simple terms, is the ability of computers to simulate intelligent behavior. In the financial sector, AI is already in use—fraud detection, trading bots, and even customer service chatbots are common applications.

Why can these two technologies be combined? Because their goals overlap—they both aim to improve efficiency, increase transparency, reduce barriers to entry, and ultimately shake up the existing order of traditional finance. DeFi changes what products people can access, while AI changes how we interact with these products.

But here’s a key issue: predictive analytics, smart contract automation, on-chain credit scoring—all sound great, but in practice, they can complicate things. We can't set unrealistic goals just to pursue high returns, nor should we cut back on human decision-making and accountability just because AI is involved.

So, how should we rationally view AI's application in DeFi? We need to identify genuine innovation opportunities and avoid hype-driven speculation. Technology is a tool, not a savior. Applications that solve real problems and improve user experience are worth paying attention to, rather than using AI just for the sake of using AI.