When you combine artificial intelligence (AI) and the internet of things, you get Artificial Intelligence of Things (AIoT). It's a match made in heaven.

It's time to tie AI and IoT together

When you combine artificial intelligence (AI) and the internet of things, you get Artificial Intelligence of Things (AIoT). The key reason behind combining the two is that IoT devices serve to collect all the data, while AI uses data (a ton of it) to identify patterns and help make decisions. It’s a match made in heaven. 

To help grasp the concept of AIoT, let’s consider the example of a smart air conditioner. A smart air conditioner has sensors installed in it. These sensors are responsible for detecting temperature outside. A sensor can only collect data. But what’s the point of merely collecting data if you can use it? That’s where AI comes in. The AI component blends with IoT devices to enable the smart air conditioner to make smart decisions such as adjusting the room temperature based on the weather outside. 

How does it work?

Data collection

As mentioned earlier, the sensors installed in the IoT devices collect data. Sensors are part of the actual devices, which means there can be multiple sensors attached to a single device, collecting different kinds of data. 

Data transmission

The data that is collected is transmitted for storage to the cloud, thanks to its vast volume. The cloud also lets you lower storage costs because you don’t have to spend vast amounts of money installing hardware to store it.

Data processing

The data that you’ve stored in the cloud needs to be processed. Else it serves no purpose. Processing data happens in various phases like extracting the relevant data from the cloud, cleaning the data, making it free from all anomalies, converting it to a standard format, and applying algorithms to derive insights.

Data prediction

Machine learning (ML) and deep learning algorithms are the keys to predicting future events. After building relevant models, the AI models can make predictions based on the obtained results.


Once the models make predictions, the machines’ final step is to act on the generated insights. While the IoT helps collect data from different resources, AI helps the devices gather meaningful insights from the collected data and act intelligently.

Benefits of combining AI with IoT

Make intelligent business decisions

You know by now that the data collected from IoT devices is so massive it makes it challenging to categorize and extract useful insights from it. To organize and identify patterns from these unstructured data and convert them into meaningful and valuable insights, you need to use AI-based algorithms to eliminate unwanted data and leverage any business model.

Enhanced operational efficiency

Smart automation enables your business to streamline its operational processes. For instance, s environmental sensors in office buildings give you data on how many people are safe inside the premises. Another example is the integration of human facial recognition software and other biometric access devices. It enables you to monitor the security of office buildings remotely.

Enhanced customer experience

With the help of AIoT, you can understand customer behavior and the challenges they face more accurately. For instance, within the retail industry, AIoT can collect inventory data such as which aisles need to be refilled, which goods are fast-moving, and which aisles remain untouched by customers. Retail businesses can better predict their customers’ behavior and habits and deliver a highly personalized shopping experience using the collected data.

Identify cost savings sooner

With early access to the data, you can identify cost savings without compromising productivity. By identifying cost drivers, an enterprise can implement changes that lower expenses. AI and IoT technologies empower leaders to reduce unnecessary spending and to optimize business procedures.

AIoT is dominating the technology industry. For industrial automation, these two technologies are much more than just a trending topic: the convergence of AI and IoT will redefine the future of industrial automation, and it is set to lead the Industry 4.0 revolution.

IoT and AI are two independent technologies that have a significant impact on multiple industries. While IoT is the central system, AI acts as the brain that makes decisions that control the overall system. This combination of IoT and AI brings us AIoT—Artificial Intelligence of Things—that delivers a more intelligent connected system.

From real-time data analytics to supply-chain sensors, smart devices help prevent costly industry errors and increase productivity. Having an intertwined relationship between IoT and AI will help enterprises move to the next level. 

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