According to a report by Bankless, smaller AI models may provide a more immediate solution to private AI than fully homomorphic encryption. The report suggests that the requirements for achieving "good enough" privacy have been reduced. Fully homomorphic encryption, which allows computations on encrypted data, is still years away from being implemented at a frontier scale. The development of smaller models could offer a more practical approach to addressing privacy concerns in the AI space in the near term.

According to a report by Bankless, smaller AI models may provide a more immediate solution to private AI than fully homomorphic encryption. The report suggests that the requirements for achieving "good enough" privacy have been reduced. Fully homomorphic encryption, which allows computations on encrypted data, is still years away from being implemented at a frontier scale. The development of smaller models could offer a more practical approach to addressing privacy concerns in the AI space in the near term.