How Decentralised AI Unlocks the Edge Computing for Enhanced Performance?

Arvind Mehrotra
7 min readOct 17, 2024

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The digital world is significantly shifting how and where data is processed. While cloud computing has dominated for years, edge computing is emerging as a powerful complement, especially for applications demanding real-time responsiveness, enhanced security, and efficient scaling. This is particularly true in the rapidly evolving landscape of AI and decentralised applications.

Cloud computing revolutionised IT by offering on-demand internet access to computing resources, storage, and applications. Its strengths lie in efficiently scaling resources up or down based on demand, the convenience of pay-as-you-go models, which eliminates upfront infrastructure investments, and access to data and applications from anywhere with an internet connection. However, cloud computing faces challenges regarding data transfer to and from distant data centres, which can cause delays and hinder real-time applications, i.e., causing latency problems in operations or customer experience. Transferring large volumes of data can strain network bandwidth and increase costs, adding to the woes of such centralised infrastructure. Centralised data centres can be vulnerable to cyberattacks and data breaches, requiring investments and ongoing management efforts to keep data secure and safe.

Edge computing addresses these limitations by processing data closer to where it’s generated — on devices, local servers, or edge data centres. It offers several advantages, including reduced latency as it processes data locally, minimising delays, and enabling real-time applications like autonomous vehicles and industrial automation. It also optimises bandwidth, requiring less data to be transmitted to the cloud, reducing bandwidth consumption and costs. Edge computing also enhances security and resilience as it distributes processing, reducing reliance on a single point of processing. It also enables processes where infrastructure uptime or performance issues persist, as edge devices can operate independently, even with intermittent connectivity.

As a CIO or CTO, you’re acutely aware of the limitations of centralised systems — latency, vulnerability to single points of failure, and scalability issues. I believe the shift towards decentralised AI is not just a trend; it’s a strategic imperative for enhanced performance and resilience.

That’s why the D in my LEAD AI framework — decentralised AI — is a vital cog.

Today, I’m deep-diving into why decentralisation is the future of AI and how you can harness its power to propel your organisation forward.

Defining Decentralised AI

Decentralised AI means distributing AI processes across multiple nodes rather than relying on a central server. In traditional centralised AI, data and computing power are concentrated in one location, creating potential bottlenecks and vulnerabilities. In contrast, decentralised AI leverages a network of interconnected nodes sharing computational load and data processing tasks.

Imagine a blockchain network where each node contributes to the validation of transactions. Similarly, in decentralised AI, each node processes a portion of the data and contributes to the overall AI model. This distribution enhances the system’s robustness, scalability, and security.

Is Decentralised AI Better than Centralised AI?

In my experience, decentralised AI is usually the better option for four key reasons:

Latency: Centralised AI systems often suffer latency issues from transmitting data to and from a central server. Decentralised AI reduces latency by processing data locally at the network’s edge, enabling real-time decision-making.

Scalability: Centralised systems can become overwhelmed as data volumes and computational demands grow. Decentralised AI scales more efficiently by distributing the workload across multiple nodes, each capable of independent operation.

Security: Centralised AI systems are vulnerable to single points of failure and cyber-attacks targeting the central server. Decentralised AI enhances security by spreading data and processing power across a network, making it harder for attackers to compromise the system.

Resilience: Decentralised AI systems are inherently more resilient. If one node fails, others can continue to operate, minimising downtime and ensuring continuity.

Why it’s better than Centralisation

The decentralised approach aligns perfectly with the demands of modern AI applications, particularly in the IoT and edge computing landscapes. For example, in smart cities, decentralised AI can process data from numerous sensors in real time, enabling responsive and adaptive urban management without the delays and risks associated with centralised processing. In AI, edge computing allows for faster model training and inference, reducing latency and enabling real-time insights. For decentralised applications, edge computing empowers greater autonomy and resilience by distributing processing and reducing reliance on centralised servers, fostering a more robust and responsive network.

The Business Benefits of Decentralising AI

How do these technical points of difference translate into business outcomes? Here are the five benefits I’ve observed:

1. Enhanced performance

Decentralised AI significantly enhances performance by reducing latency and improving real-time processing capabilities. It is crucial in sectors such as finance, healthcare, and autonomous vehicles, where split-second decisions can make a significant difference.

2. Greater compliance

Decentralised AI’s distributed nature reduces the risk of data breaches and cyber-attacks. This added layer of security is invaluable for organisations such as financial institutions and healthcare providers that handle sensitive information.

3. Cost efficiency

While setting up a decentralised network might require initial investment, the long-term cost benefits are substantial. Decentralised AI reduces the need for expensive central servers and data centres, as the computational load sharing is across existing infrastructure.

4. Business growth

As your organisation grows, so do your AI demands. Decentralised AI allows you to scale seamlessly by adding more nodes to the network, avoiding the bottlenecks and limitations of centralised systems.

5. Operational resilience

Distributing processing across multiple edge nodes creates a more robust and fault-tolerant network for decentralised applications. Maintaining operations even if part of the system fails is a significant advantage. Decentralised AI’s resilience ensures that your business can continue functioning smoothly, even in the face of technical issues or cyber threats.

Decentralised AI is the Future; Here’s How You Can Prepare Today

While the widespread adoption of decentralised AI may still be a few years away, here are some examples to spur you on:

Intelligent Cities: Edge computing enables real-time traffic management, environmental monitoring, and public safety applications.

Healthcare: Edge-powered medical devices allow remote patient monitoring and real-time diagnostics.

Manufacturing: Edge AI optimises production processes, predicts equipment failures, and enables autonomous robots.

You can start preparing today by:

1. Investing in edge computing

Edge computing is the backbone of decentralised AI. You can reduce latency and improve real-time processing by processing data at the network’s edge — close to the source. Investing in edge computing infrastructure is a critical step towards decentralising your AI

2. Fostering a decentralised mindset

Shifting from a centralised to a decentralised approach requires a change in mindset. Encourage your teams to think about distributed systems and explore how decentralisation affects various aspects of your AI strategy. Edge computing enables AI models to analyse data and make real-time decisions, which is crucial for applications like facial recognition, fraud detection, and autonomous systems.

3. Collaborate with industry leaders

Engage with industry leaders and experts in decentralised AI. Collaborating with pioneers in the field can provide valuable insights and accelerate your organisation’s transition to decentralised AI.

4. Piloting decentralised AI projects

Start with pilot projects to test the feasibility and benefits of decentralised AI in your organisation. Identify key areas where decentralisation can significantly impact and use these projects to build expertise and confidence in the new approach. Deploy AI models directly on edge devices like smartphones, IoT sensors, and robots, enabling intelligent actions without relying on cloud connectivity.

5. Ensuring robust security measures

While decentralised AI enhances security, it also requires robust measures to protect the distributed nodes. Implement advanced encryption, regular security audits, and continuous monitoring to safeguard your decentralised AI network.

Conclusion: It’s Time to Start Changing How You Think About AI

The future lies in a hybrid approach that combines the strengths of both cloud and edge computing. Cloud computing will continue to excel at handling large-scale data storage, complex analytics, and centralised resource management. Edge computing will empower real-time applications, enhance security, and enable new possibilities in the AI and decentralised app world.

The transition from centralised to decentralised AI is not just a technological shift; it’s a strategic evolution that can redefine your organisation’s capabilities. By embracing decentralised AI, you can unlock new performance, security, and scalability levels, positioning your organisation at the forefront of innovation.

As a CIO or CTO, the challenge is clear: how will you harness the distributed power of decentralised AI to drive your organisation forward? The future is decentralised, and the time to act is now. Start exploring, investing, and transforming your AI strategy today to lead your organisation into a resilient and high-performing future.

For an in-depth discussion on these insights, email me at arvind@am-pmassociates.com.

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Arvind Mehrotra
Arvind Mehrotra

Written by Arvind Mehrotra

Board Advisor, Strategy, Culture Alignment and Technology Advisor

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