How AI Will Impact Payments and Invoicing: The Strategic Positioning of Request Network
Request Network
Dec 18, 2024
6 min.
AI is introducing a paradigm shift that few had anticipated in the world of payments. We are entering an enigmatic phase that even science fiction struggles to predict.
At Request Network, we have been working for years to formalize payment requests so that all accounting and invoicing software can understand and interact with each other seamlessly (goodbye, PDFs). With the advent of AI in the payment ecosystem, it is crucial for us to explore the next steps in a world where AIs initiate payments.
How will one AI negotiate with another for commerce? What are the steps, and how can I, as a developer, teach my AI to make purchases? Moreover, how can all AIs agree on a common standard and formality for transactions?
This article will delve into the specific requirements of an AI bot, assistant, or agent to identify a service, negotiate the cost, place the order, settle the payment, and deliver the output.
At the end, you will see a video of an experimental interaction between two AI agents, illustrating the future of automated commerce powered by Request Network.
Why should AI agents record their TXs on the blockchain?
Blockchain technology provides a decentralized and tamper-proof ledger, which is essential for autonomous AI agents. Recording transactions on the blockchain ensures transparency, security, and trust between interacting agents.
It also allows for immutable record-keeping, which is crucial for auditing, dispute resolution, and compliance.
The trade process between AI agents
Let’s break down step by step how two agents can interact in a trade scenario:
1. Service discovery
Objective: Each AI agent needs to be able to find and identify the other agent's available services.
Protocol:
Service Registry: Each agent should register its services in a discoverable format, either in a centralized directory or a decentralized system like a distributed ledger.
Service Query: Agents query the registry using a standardized API to find other agents offering the desired services.
Service Description: Each service is described by metadata, including service type, cost, performance metrics, and terms of service.
2. Negotiation
Objective: Agents need to agree on the specifics of the service to be provided and the terms of payment.
Protocol:
Initiation: An agent sends a negotiation request to another agent. The request includes proposed terms such as service details, delivery timelines, and price.
Counteroffer: The receiving agent can accept the offer, reject it, or make a counteroffer.
Agreement: This phase continues until both parties agree on the terms or one party terminates the negotiation.
3. Payment setup
Objective: Establish a secure and reliable method for transferring funds in exchange for services.
Protocol:
Currency Selection: Agents agree on a form of digital payment (e.g., cryptocurrency).
Payment Gateway: Agents handle transactions using a trusted third-party payment gateway or a smart contract on a blockchain.
Escrow (Optional): For high-value transactions, an escrow account can be stipulated, where funds are held until service delivery is confirmed.
Payment conditions (Optional): Agents agree on the due date, down payments, late fees, and other initial conditions.
4. Service execution
Objective: The service provider performs the agreed-upon service.
Protocol:
Execution: The provider agent executes the service as per the agreed parameters.
Monitoring: The consumer agent may monitor the service execution through progress updates sent by the provider agent.
5. Payment transfer
*If not upfront, otherwise, it happens before the previous step.
Objective: Secure payment transfer from the consumer to the provider upon service completion.
Protocol:
Completion Confirmation: The provider sends a completion notice to the consumer.
Verification: The consumer verifies the service against the agreed criteria.
Release of Funds: Upon verification, the AI agent sends funds, or the payment gateway releases funds to the provider
Note about the release of funds:
To release the funds, the AI agent needs access to them. It can either own its own wallet, have debit access to a human/company wallet, or ask someone else to manually confirm the transaction.
6. Dispute resolution
Objective: Provide a mechanism for resolving disputes that may arise during or after the service transaction.
Protocol:
Dispute Initiation: Either agent can initiate a dispute if there is disagreement over service delivery or payment.
Arbitration: A pre-agreed third-party arbitrator or a smart contract-based system reviews the evidence presented by both agents.
Resolution: The arbitrator makes a decision that might include a refund, partial payment, or additional service provision.
7. Feedback and ratings
Objective: Collect feedback on both the service provided and the customer experience.
Protocol:
Feedback Submission: Both agents provide feedback and rate each other post-transaction.
Rating System: Ratings are stored in a publicly accessible profile associated with each agent, influencing future transaction trust levels.
Technical requirements
Authentication: Agents must authenticate each other’s identity to prevent fraud.
Data Integrity: Data transferred between agents must be signed and occasionally stored on the blockchain if needed for security, legislation, ratings.
Launching an AI lab to experiment: AIs purchasing haikus
To get into the specifics, there's nothing better than a practical exercise. What if we asked our AI assistant to hire an AI agent expert in Haiku creation?
We currently lack a discovery service, negotiation standards, an efficient way to set up the payment, a dispute resolution mechanism, and a reputation system.
So let’s develop these services for everyone. Here is the process we will follow to implement these services through an example :
The AI assistant searches for an AI agent expert in Haikus.
The AI assistant negotiates the service terms with the AI agent.
The AI agent signs a request for payment and sends it to the AI assistant
The AI assistant validates the Request and broadcasts the transaction and the payment.
The AI agent delivers the Haiku to the AI assistant.
The AI assistant validates the Haiku's quality and posts a review of the AI agent.
See it in action.
Conclusion
The future of commerce envisions a world where AI agents trade autonomously with humans and among themselves. By harnessing the power of blockchain technology and standardized protocols, we can enable secure, transparent, and efficient AI-to-AI transactions, paving the way for a more seamless and intelligent economy.
At Request Network, we’re excited to be part of this journey, providing the tools and infrastructure necessary for developers to empower their AI agents with self-transacting capabilities.
Find out how to add payment capabilities to your AI agent.
Alternatively, book a demo call to discuss how Request Network’s infrastructure can add payment and invoicing capabilities to your AI agent.
ABOUT REQUEST NETWORK
The Request Network Foundation’s mission is to re-invent accounting and finance by creating a decentralized network of interoperable apps that promotes transparency and real-time reporting.
We inspire and educate developers, partners, and authorities to use Request Network and build an open-source, seamless, and interoperable financial ecosystem.
We’re building a network that connects businesses worldwide, giving them ways to do business at the speed of the internet.
Be a part of tomorrow’s financial revolution.
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