The Blend of IoT and AI – What Is It? Why Does It Matter?

The adoption of IoT (Internet of Things) has rapidly changed today’s business world. IoT predominantly helps to capture vast volumes of data from multiple sources. However, the processes of collecting, processing, and analyzing the tremendous flow of data from countless IoT devices have turned complex.

The data-driven nature of present-day businesses requires investments in innovative technologies that can turn this complex process into a simplified yet easily comprehensible one. This is the point where the convergence of IoT and Artificial Intelligence (AI) or AIoT can play a major role in redefining how businesses and economies work.

While IoT comprises devices interacting over the internet, the Machine Learning (ML) capabilities of AI make IoT devices learn from the data they collect. AI-enabled intelligent IoT devices can simulate smart human (at times, superhuman) behavior and decision-making patterns with little or no human interference.

The Rising Trend of IoT and AI Convergence

As a prominent part of their business processes, several businesses worldwide have already embraced the combination of IoT and AI. A 2019 survey reveals that respondents that heavily use AI in their IoT operations exceeded their value expectations. Similarly, a PwC 2019 IoT survey shows that 97% of the companies that have integrated IoT with other technologies such as AI and Blockchain were able to reap the benefits through this investment.

Start-ups and large enterprises alike prefer AI technology to bring out the full potential of IoT. The major leading providers of IoT platforms like Oracle, Amazon, and Microsoft have begun incorporating AI technology into their IoT applications already.

From robotics, self-driving cars and advanced analytics to Industry 4.0 Digital Twins and smart IoT devices, AI-powered IoT is increasingly becoming important across a range of business areas. As a matter of fact, the next evolutionary step for IoT is to embrace AI and drive intelligent automation and decision-making.

How the Blend of IoT and AI Works

At its heart, IoT is all about machines with sensors implanted. These machines, over internet connectivity, transmit streams of data. All IoT devices inevitably follow five basic steps. They are:

• Create
• Communicate
• Aggregate
• Analyze
• Act

The ‘Act’ step solely depends on the ‘Analysis’ step that immediately precedes it. Therefore, the efficiency of an IoT device is determined by its Analysis step. This is the point where AI technology portrays a significant role. While IoT devices provide a multitude of data, AI offers both creativity and context to make smart actions. Therefore, businesses can make smart decisions when an unlimited stream of data delivered by IoT devices is analyzed by AI technology.

Surprising Benefits of AI-Powered IoT

Combining two disruptive technologies like AI and IoT brings a broader range of benefits for both businesses and consumers alike. Some of the most popular benefits are as follows:

Enhanced Efficiency in Enterprise Operations

ML capabilities of AI can crunch huge volumes of data from IoT devices and detect patterns that can’t be done with simple computing devices. It can also predict the enterprise operation conditions and bring solutions for ideal outcomes. Therefore, redundant and time-consuming business tasks are eliminated.

An Efficient Risk Management System

AI-Powered IoT helps businesses analyze and predict a broader set of risks and automate timely responses. It ensures efficient handling of financial loss, employee safety, and cyber-attacks.

Brings Out Innovative Products And Services

A prominent AI technology like Natural Language Processing (NLP) is getting better at letting people communicate easily with computing devices. This leads to the creation of innovative products and services yet enhances the existing ones.

Enhanced Scalability

The AI-powered IoT ecosystem analyzes and crunches the data from devices ranging from smartphones to high-end computing devices to low-end sensors. This process can make large volumes of data handy and make it easier to share across a larger network of IoT devices.

Eliminates Unpredictable Yet Expensive Downtime

In some industrial sectors like offshore oil and gas, as well as industrial manufacturing, unpredictable equipment failures can bring expensive downtime. AI-enabled IoT allows you to predict equipment breakdowns and schedule timely maintenance procedures.

Generally, IoT combined with AI technology can lead the path towards an advanced level of business solutions and user experiences. To achieve greater value from your enterprise network and to transform your business, you should undeniably integrate AI with IoT devices.