The Future of the Agent Internet Explored by Kite AI, PayPal, and M12

Kite AI, a trailblazing initiative dedicated to building infrastructure for the AI agent economy, recently launched its "AI on AIR" podcast on October 22. The premiere episode brought together industry leaders from PayPal and M12, Microsoft's venture fund, to explore the transformative potential of the "Agent Internet."

Moderated by Kite AI co-founders Chi Zhang and Scott Shi, the podcast featured insights from Jonathan Cordeau, Vice President of Enterprise Product Growth at PayPal, and Alan Du, partner at M12. The discussion revolved around two integral concepts reshaping the AI industry: the "programmable trust" framework and the development of "agent-native identities."

Redefining Trust in the Age of AI: The Rise of "Programmable Trust"

Chi Zhang kicked off the discussion, emphasizing the crucial role of programmable trust infrastructure in the evolution of AI-driven systems. According to Zhang, "Programmable trust is the backbone of the Agent Internet. It is fundamental for ensuring secure interactions involving finance, identity, and digital transactions."

Jonathan Cordeau added a cautionary note, highlighting the vulnerabilities inherent in AI commerce without proper trust mechanisms. "The same AI tools that offer efficiency can also be exploited by bad actors to create fraudulent profiles, execute scams, or even steal financial data on an unprecedented scale," he explained.

Echoing the importance of trust, Alan Du advocated for implementing secure and scalable "AI agent-native protocols" that prioritize safeguarding critical financial processes while advancing operational performance.

Moving Beyond Current Systems: The Case for "Agent-Native" Infrastructure

During the conversation, panelists identified limitations in current AI frameworks that rely on human identities. These "borrowed identities," as described in the discussion, hinder the autonomy of AI agents and necessitate the creation of dedicated, agent-native infrastructure.

Scott Shi presented Kite AI’s vision for addressing this technological gap. He detailed Kite's three foundational pillars: agent-native IDs, agent-native payment systems, and agent-native authentication methods. "Today's infrastructure was made exclusively for humans. We need systems specifically designed for autonomous agents," said Shi.

Alan Du elaborated on the concept, stressing that for AI agents to operate independently, they require unique identifiers and infrastructure akin to human credit scoring systems. "Credit scores help us establish trust among individuals. Autonomous agents need a similar kind of framework to ensure accountability and reliability in their transactions."

Stablecoins: The Financial Backbone of Autonomous Agents

Throughout the discussion, panelists highlighted stablecoins as the ideal "native currency" for agent-native payments. Given their programmability and cost-efficient nature, stablecoins are poised to redefine financial interactions in AI ecosystems.

Shi emphasized the central role of stablecoins in Kite AI's approach. "We are laying the foundation of our framework on agent payments utilizing stablecoins," he explained. Stablecoins allow AI agents to handle microtransactions with unrivaled speed, affordability, and simplicity.

Cordeau expanded on the transformative potential of stablecoins, noting their ability to unlock new opportunities for low-cost transactions. "Stablecoins facilitate microtransactions in areas like content payments or data access for mere cents, innovations that traditional payment networks struggle to support efficiently," he said.

Du also highlighted how stablecoins could revolutionize industries that rely on high-frequency, low-cost operations. "Legacy systems are poorly optimized for microtasks such as GPU computing and data processing, where costs are often less than a cent. Stablecoins will lead the way to efficient payment solutions for these challenges," Du predicted.

Toward Autonomous Finance: A Collaborative Vision

To conclude the discussion, Kite AI reaffirmed its groundbreaking partnership with PayPal and other key industry players to pave the way for the next iteration of digital finance built around autonomous systems. The podcast served as a vivid preview of how programmable trust infrastructure, stablecoins, and agent-native identities could disrupt traditional business models and drive the evolution of the Agent Internet.

By focusing on seamless trust, self-governing identities, and agile payment systems, Kite AI aims to unlock unprecedented possibilities for autonomous finance, transforming the digital landscape and empowering AI agents to achieve true autonomy in a rapidly evolving economy.