IoT Needs AI

Why Internet of Things Needs Artificial Intelligence?[Overview]

Last updated on December 22nd, 2023 at 07:17 am

IoT devices are not like a basic set of smartphones and computers. IoT is a game-changer in the digital world because it can automate and streamline operations across multiple industry verticals.

By integrating artificial intelligence with IoT devices, developers are trying to figure out the actionable insights generated over the years through business models.

Intelligent assistants such as Alexa and Siri offer personalized experiences to users according to their voice and non-voice interactions. Internet of Things solutions is changing the space around us by making it more efficient, whereas artificial intelligence complements the human brain.

Like other devices, IoT devices also generate a massive volume of data, which helps provide actionable insights.

Before going on to discuss the role of AI in IoT, let’s explore what AIoT is.

IT Solutions

What is the AIoT?

The combination of AI and IoT is called AIoT. To fully understand the meaning of AIoT, it is essential to start with the Internet of Things.

The Internet of Things uses when “things” such as digital assistants, sensors in refrigerators, and wearable devices are connected to the Internet to collect and process data.

Artificial intelligence is when a system can automatically complete a task without the involvement of any human being. So when artificial intelligence integrates with the Internet of Things, the devices can analyse data to make decisions without the participation of humans.

The intelligence offered by AIoT acts to optimize the system for generating higher profits and business insights to make better decisions so that the system can learn from them.

Statistics about AIoT Market Size



  • By eliminating firewall constraints that might obstruct access to an on-premises solution, cloud-based AIOps platforms are responsible for the cloud deployment segment’s 45% market share in the AIoT by 2022.
  • Furthermore, cloud object storage services offer infinite virtual storage capacity, eliminating the storage volume and scalability limits of locally installed hardware.
  • Cloud-based and SaaS solutions also minimize overhead and maintenance expenses.

How Does AIoT Work?

Under the AIoT system, artificial intelligence focuses on considering infrastructure elements like chipsets and programs. All of these are connected using IoT networks.

Then, APIs ensure all software, hardware, and platform elements are competent for handling and interacting without struggle from the end user.

IoT devices develop and collect data, which AI then assesses to offer insights and enhance productivity and efficiency. AI increases senses by using procedures such as data learning.

AIoT data can deal with the edge. It means data is processed as close to such systems as possible to reduce the bandwidth. It helps to move data while eliminating potential delays to data assessment.

Why IoT Needs AI

AI shows the potential of IoT by letting devices and networks learn from past decisions, predict what will happen in the future, and improve their performance and ability to make decisions.

Let’s discuss why IoT needs AI in detail:

AI Smart Home Solutions

With automation, anyone can easily control the devices, lights, appliances, and in-house climate in real time. The Internet of Things provides robust security and alarm systems that are more energy efficient and designed with efficient power sources.

The Internet of Things has completely changed how humans live, as now they can control every electronic device in their house through their smartphones. With artificial intelligence setting its foot in the Internet of Things industry, a wide range of home solutions have emerged, including:

Voice Assistant

With the launch of Google Home, Apple HomePod, and Alexa in the market, humans can seamlessly connect with lightning and entertainment devices and make the most of them. A few tabs easily control the essential functions of the house.

Security and Safety

Integrating smartphones with security tools such as entry detectors, cameras, and motion sensors—called video power doorbells—offers the house robust security and safety. From anywhere, you can control any device linked to the Internet of Things using a mobile phone.

Innovative home solutions allow you to be ever-present at your home, even when you are not. AI-powered smart home solutions offer extra security and comfort at a reasonable cost.

Energy Savings

When you can control all the electronic appliances, thermostats, lighting parameters, and air conditioning in your home, you can turn it into an energy-efficient environment that saves a lot on energy bills.

hire dedicated development team

AI-Powered IoT

IoT device developers are spending more money and resources to integrate artificial intelligence development with IoT devices to create self-learning systems that can adapt and learn new changes without human intervention. Big brands and organizations in the market are investing money in it.

With the help of machine learning, this reality can arrive at any time because essential steps have already been considered. For example, the launch of automated chatbots is helping to improve relations with customers by quickly responding to requests and queries.

She is dealing with essential appointments, whether it is about taking food orders or booking reservations. Smart devices have already infiltrated every industry.

Companies use deep learning algorithms for data mining to drive sales and improve their conversion rates. They use Google Assistant, Alexa, and Siri, natural language processing, and speech recognition work.

It helps business organizations to generate actionable insights by decoding a particular language to make sense of it. It is connected with the interactions of humans and computers to drive sales and values.

Moreover, IoT services in the healthcare and logistics industries are also helping with the automation of their operations.

Amazon is ruling the eCommerce industry and managing logistics through devices where smart alarms use in hospitals and clinics for effective emergency response.

Public Transit and Smart Road Management

Smart highway and road prototypes will be available in the market very soon. The idea of creating smart roads and highways is related to streamlining street lights, vehicles, and traffic lights into a single effective channel to control and minimize road accidents by handling traffic effortlessly.

Concrete slabs protect the vehicle’s location and motion in real-time, using smart sensors integrated within the car. These concrete slabs will also analyse and collect data on Ford road conditions and congestion to guide self-driving vehicles toward saving roots and reaching destinations.

In many cities, smart buses are already on the road, equipped with advanced features such as global navigation satellite systems and wireless communication for improved and efficient coordination on the routes during the journey.

Passenger and driver behaviour assesses to improve services and fulfil user demands and expectations. Real-time live surveillance and video analytics ensure the driver’s and passengers’ security.

Moreover, the passengers can also avail themselves of smart services with the help of mobile apps to schedule their journey as per their convenience and preferences.

Wireless communication networks offer ultra-fast services with minimal requirements to make the system work effortlessly and efficiently. Soon, a new infrastructure capable of 5G will be rolled out to easily handle large amounts of data sent through fibre optics.

Autonomous Vehicles and Fleet Management

To monitor and manage a fleet’s vehicles, track vehicle maintenance, reduce fuel costs, and analyse unsafe driver behaviour, artificial intelligence is integrating IoT devices such as GPS and other sensors for better fleet management.

Tesla’s autopilot system is another example of an intelligent device integrated with artificial intelligence that uses GPS, cameras, sonars, and radars to collect and analyse information about driving conditions.

Smarter Retail

The camera in a smart retail shop integrates with the computer system to recognize customers’ faces as they walk in through the door.

The system collects various customer information, such as product preference, traffic flow, and gender, for reading and analysing customer behaviour and offering more efficient and flexible services.

It helps to make informative and important decisions about store operations for marketing and product placement. For example, suppose most customers who walk into the store are millennials.

In that case, it can automatically send out advertisements for in-store specials based on demographics to increase sales. Smart cameras are used in the Amazon Go store to prevent shoppers from skipping the checkout stage.

Benefits of AIoT

Benefits of AI

Every day, IoT systems create about 1 billion gigabytes of data. The estimated global market for IoT-connected systems will reach 42 billion by 2025. The data effectively grows as the networks grow.

IoT is insufficient to satisfy shifting requirements and expectations. There is a possibility that growing data may bring about more obstacles than possibilities.

Barriers constrain all of this data’s potential and insights. But, with the help of intelligent technologies, businesses may convert that and realize the full potential of their organizational data.

The Internet of Things system may continually improve its decision-making and execution skills by using artificial intelligence to forecast future practices, learn from past judgments, and make better decisions.

AI enables the systems to operate independently, analyzing data and making precise conclusions without delays or jams brought on by data transmissions.

For businesses, AIoT offers several advantages and a potent answer to intelligent automation.

Increasing Effectiveness of Operations

AI is more effective than humans in detecting fundamental trends and managing the vast amount of data sent to IoT devices. This skill may be improved using artificial intelligence and the Internet of Things by calculating the operating circumstances and adjustments needed for better outcomes.

Preventing Downtime

Malfunctions happen in several industries, including the offshore oil and gas industry. Unexpected failures might result in high downtime costs. To prevent this, AIoT can forecast equipment failure during preventative maintenance first before equipment encounters serious difficulties.

Greater Risk-Taking

Risk management works well in the continually changing market environment. Artificial intelligence (AI) for the Internet of Things (IoT) may consider the data for calculating the risks and selecting the best course of action, improving employee safety, preventing cyber threats and reducing economic losses.

Facilitating the Development of New, Better Goods and Services

Growing advances in natural language processing enable more meaningful interactions between machines and people. AIoT may enhance new or existing goods and services by facilitating efficient data management and analytics.

Superior Customer Experience

AIoT enables companies to deliver improved customer experience by using real-time data and intelligent automation. AIoT lets companies give their customers better experiences using real-time data and smart technology.

Companies can collect and analyze real-time customer data using AI and IoT devices. This allows them to connect with customers in a personalized way and consider their current situation.

Real-time Analytics and Monitoring

AIoT lets you get a lot of data from linked sensors and gadgets and handle it in real-time. AI systems can analyze this data to get useful information that can be used immediately to make decisions.

With real-time data and tracking, businesses can find outliers and trends, predict results, and act quickly when conditions change.

Applications and Examples of AIoT

AIoT Examples

The Internet of Things and artificial intelligence are integrated into the IT industry. While both disciplines have individual values, their perspectives can be understood together.

Different apps across different sectors need AI and IoT. Though other AIoT apps emphasize the execution of cognitive computing in consumer appliances, here are some eye-catching examples of wider applications of IoT:


Drones are planes that are flown by software instead of human pilots. It can be significantly more efficient because they can navigate unfamiliar environments, including those beyond the reach of the Internet. It can be riskier for humans in mines, offshore operations, burning buildings, and war zones.

Collaborative Robots

Did you ever want the assistance of a robot? It is actually about getting something from Cobots or collaborative robots. These Cobots are extremely challenging machines. It aims to help people in a communal workspace with corporate and industrial settings.

They might be complicated robots to handle the frightening accusations or robot helpers for the work.

Smart Retailing

It makes it smart to shop. Because retailers use AI and IoT to comprehend customer behaviour by assessing the in-store inventory and customer online profile, they also send real-time customization offers when they visit the store.

Digital Twins

It is defined as a “twin object,” wherein One is a physical thing, while the other is a computerized representation of it. These items come in various shapes, including wind generators and jet aircraft. It assesses the object’s performance without applying traditional testing techniques. It contributes to lowering testing costs.

Smart Cities

Why shouldn’t whole cities benefit when everything is becoming smarter? A sensor node connected to existing municipal infrastructure helps construct smart cities. These detectors may evaluate the city’s many civic aspects, such as traffic, fuel efficiency, noise pollution, water consumption, and air quality.


Top Use Cases of AIoT

The uses you listed are some of the best for AIoT (Artificial Intelligence of Things). It’s possible that AI and IoT technologies working together can completely change many areas and make things much more efficient, productive, and straightforward.

Let’s take a closer look at each one:

Video Surveillance

Adding computer vision methods for object identification, face recognition, and behavior analysis to AIoT can improve video security systems. It makes it possible to watch in real-time, automatically find threats, and take proactive security steps.

Inventory Management

By combining IoT devices with AI algorithms, AIoT can improve inventory management. It lets you see how much product you have at any given time, automatically restock, predict demand, and handle your stock well, which cuts costs and makes customers happier.

Predictive Maintenance

AIoT collects and analyses data from tools and gadgets linked to it. It makes predictive maintenance possible. Machine learning algorithms can find trends and outliers in data to predict breakdowns or maintenance needs before they happen. It cuts down on downtime and makes maintenance plans more efficient.

Supply Chain Management

AIoT can change how supply chain management is done by letting people see, track, and improve the flow of things throughout the whole chain in real-time. It makes transportation planning, route optimization, demand predictions, and stocking optimization much easier, saving money and streamlining operations.

Robust Asset Management

AIoT improves asset management by letting assets be monitored in real-time and collecting data on their state, position, and use. AI programs can look at this data and find ways to make better repair plans, use assets more efficiently, and spot possible risks or waste.

Energy Consumption Management

The Internet of Things (IoT) collects real-time data from energy meters, gadgets, and sensors to help people use less energy. AI programs can look at this data to find trends in how much energy is used, find outliers, and give information on how to use power more efficiently, save money, and support sustainability efforts.

Real-time Machinery Condition Monitoring

AIoT uses IoT devices and AI algorithms to allow constant tracking of machinery and equipment. It lets you monitor things quickly, find problems or issues early, and do preventative maintenance to reduce downtime and boost productivity.


Integrating artificial intelligence with IoT devices will offer great control over sensors and devices connected to the Internet. The IoT industry integrated with artificial intelligence is growing rapidly. Many reports have forecast that by the end of 2025, it will have an economic impact of around $11 trillion.

The basic idea behind integrating artificial intelligence with the Internet of Things is to automate operations beyond connectivity. Soon, offices, e-wallets with AI, healthcare, smart homes, driver-less cars, and smart roads will become the new reality with a lasting impact.

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