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AI and IoT at the crossroads: the rise of AIoT and its impact on the future

AI & ML

IoT

In the age of digital transformation, businesses are leveraging advanced technologies like AI for IoT to cut costs, increase efficiency, and improve customer service. Two of the most rapidly advancing technologies, artificial intelligence (AI) and the internet of things (IoT) are converging to create a new paradigm that promises to revolutionize how businesses operate and compete in the marketplace. This powerful combination, known as artificial intelligence of things (AIoT), is transforming every industry, from retail to healthcare, automotive to agriculture.

According to Gartner’s forecast, by 2023, approximately one-third of companies that deploy IoT initiatives will utilize AI in at least one project. With the use of AI applications, raw data can be analyzed in real-time, enabling connected devices to take prompt action based on the information received.

How AI and IoT converge to change the way you do business

At its core, AIoT is about harnessing the power of artificial intelligence to make sense of the vast amounts of raw data generated by the internet of things. IoT devices are proliferating rapidly, from smart homes and wearables to smart cities and industrial equipment. These devices generate huge amounts of data that can be analyzed to gain insights and improve operations. But without AI, that data is often overwhelming and difficult to manage.

By applying machine learning and other AI technologies to IoT data, organizations gain real-time insights into operations, improve customer experiences, and streamline processes. For example, by analyzing sensor data from manufacturing equipment, organizations detect issues before they become a problem, and schedule maintenance proactively. This saves millions of dollars in lost productivity and repair costs.

Advantages and benefits of AIoT applications in business

The integration of AI and IoT solutions has opened up a new era of innovation in the business world. This convergence of cutting-edge technologies offers numerous advantages and benefits to businesses across various industries and sizes. AIoT has the potential to revolutionize how businesses operate and compete in the marketplace, from streamlining operations to enhancing customer experience.

Data mining, sharing, and formulating user perceptions

The artificial intelligence of things offers businesses the ability to mine and share data from multiple sources, enabling them to formulate user perceptions. By analyzing all this raw data from the internet of things devices, organizations gain a deeper understanding of their customers’ behaviors, preferences, and trends. This helps businesses create more personalized and targeted marketing campaigns, as well as develop new products and services that better meet customer needs. In addition, AIoT helps businesses make better strategic decisions by providing them with access to extensive data from various sources, allowing them to make more informed decisions.

Improved customer experience

AIoT also helps businesses improve customer experience by providing personalized recommendations and tailored services. For example, by analyzing customer data from smart home devices, a retailer recommends products that are most likely to appeal to a particular customer, based on their past purchases and behavior. This leads to higher customer satisfaction and loyalty.

Elimination of downtime

AIoT helps businesses eliminate downtime by detecting potential problems before they occur. By analyzing sensor data from industrial equipment, for example, organizations identify when machines are starting to show signs of wear and tear, and schedule maintenance proactively. This helps avoid costly downtime and reduce repair costs.

Enhanced security

AIoT helps enhance security by detecting and preventing cyberattacks. Companies can proactively prevent potential security breaches by utilizing real-time analysis of network traffic data, enabling them to identify anomalies and promptly intervene, thus mitigating potential damage.

Better operational efficiency

AIoT enables businesses to enhance operational efficiency through process automation and minimizing the need for manual labor. For example, by using artificial intelligence to analyze sensor data from manufacturing equipment, organizations can automate maintenance and repair schedules, reducing the need for human intervention.

Increased automation

The use of AIoT leads to an increase in automation, where machines and devices communicate with each other and perform tasks without human intervention. This leads to increased efficiency, cost savings, and reduced human error. For example, in a manufacturing plant, AIoT is used to monitor and control machinery, leading to reduced downtime and increased productivity. In the transportation industry, AIoT is used for autonomous vehicles and traffic management systems, leading to improved safety and reduced traffic congestion. The possibilities for increased automation with AIoT are vast, and businesses can benefit greatly by leveraging this technology to streamline their operations.

Better business analysis processing

By integrating AI algorithms with data gathered from IoT devices, businesses can effectively analyze raw data and large datasets and acquire valuable insights. AIoT empowers businesses to uncover trends, patterns, and correlations that may elude human analysts. Through machine learning capabilities, it makes accurate predictions, detects anomalies, and offers actionable recommendations. This empowers businesses to make well-informed choices, enhance operational effectiveness, and uncover concealed possibilities for growth and efficiency. With AIoT, businesses can unlock their data’s full potential, gaining a competitive advantage in the market.

Smart inventory tracking and management

Organizations can gain real-time insight into inventory quantities, whereabouts, and states by integrating AI algorithms with IoT devices. IoT sensors and devices continually provide data on stock levels, movements, and environmental factors like temperature and humidity. Utilizing AI algorithms, businesses can harness real-time data analysis to optimize inventory levels, mitigate stockouts or overstocking, and streamline supply chain operations. AIoT also enables accurate demand forecasting, empowering businesses to consider customer demand when planning inventories. Smart inventory tracking and management, powered by AIoT, reduces carrying costs, improves order fulfillment, and optimizes the supply chain.

Advanced risks management

By leveraging AI algorithms and live data from connected devices, businesses can proactively monitor and assess risks across various domains. AIoT enables continuous monitoring of operations, equipment performance, and environmental conditions, helping businesses detect potential risks and anomalies in real time. For example, it can assess data from IoT sensors to spot patterns indicative of equipment failures or maintenance needs, allowing businesses to schedule proactive maintenance and prevent costly downtime. It also strengthens security and safety by detecting potential security breaches or unauthorized access through data analysis and anomaly detection. Integrating AIoT into risk management strategies empowers businesses to take timely preventive actions, reduce the likelihood of errors, damages, or losses, and ensure business continuity and resilience.

Triggering new and enhanced products/services

AIoT also helps businesses in triggering new and enhanced products and services. By analyzing customer data from connected devices, organizations identify unmet needs and develop new products and services that better meet customer needs. This helps them stay ahead of the competition and drive growth.

Increased IoT scalability

AIoT enables businesses to achieve increased scalability for their internet of things infrastructure. By leveraging artificial intelligence and machine learning algorithms, organizations optimize their internet of things network and manage a large number of connected devices more efficiently. This allows for faster data processing, better insights, and improved decision-making. Furthermore, the increased scalability enables businesses to expand their IoT capabilities to new areas and applications, such as smart cities or connected healthcare, which lead to new revenue streams and growth opportunities.

Practical examples of AIoT applications

This synergy between artificial intelligence and the internet of things allows for the creation of intelligent systems that can sense, analyze, and act upon data in real time, enabling various AI and IoT use cases. The potential of AIoT applications is vast and can be found in many industries, from healthcare and transportation to agriculture and manufacturing.

Manufacturing

Integrating AI with the IIoT

The rise of the industrial internet of things (IIoT) has provided businesses with new possibilities for data collection from untapped sources, leading to opportunities for enhanced productivity. By collecting performance metrics and environment data from equipment and machinery, organizations can improve their decision-making. However, the sheer volume of IIoT data surpasses human processing capabilities, resulting in a significant amount of unanalyzed and unused information. To address this challenge, businesses and industry experts are increasingly turning to AI and machine learning software for IIoT applications, enabling a comprehensive view of the data and facilitating faster and smarter decision-making.

Underutilized IIoT data

The number of industrial devices connected to the Internet is rapidly increasing and is projected to reach 41.6 billion endpoints by 2025. Furthermore, each device generates a substantial amount of data. Manual analysis of all the sensor-generated information from a manufacturing assembly line would be a daunting task, taking an extensive amount of time. In fact, studies have shown that less than half of organizations’ structured data and less than 1% of unstructured data in organizations are actively used for decision-making. This data oversight is prevalent, as illustrated by the mere 10% of video data from IP cameras being analyzed each day, despite the ability to collect significantly more information. Due to human limitations in data analysis, businesses are seeking to incorporate AI and machine learning into their IIoT applications.

Combining AI with IIoT

In mission-critical industrial applications, the integration of AI and IoT offers cost reduction, better preventive maintenance, and decreased human error. As a subset of AI, machine learning enables systems to learn and improve automatically through experience, using algorithms and advanced neural networks. Another related term is “deep learning,” which involves multilayered neural networks learning from extensive data sets.

Within the context of the industrial internet of things, computer vision and AI-powered video analytics enable classification and recognition for a variety of industrial applications. From remote monitoring and preventive maintenance to intelligent transportation systems controlling traffic signals based on vehicle identification, computer vision and video analytics boost productivity and efficiency in industrial settings.

Industrial AIoT applications

Industrial AIoT applications encompass a wide range of use cases within manufacturing settings, leveraging the integration of AI and IoT technologies. One such application is predictive maintenance, where AIoT devices utilize data from IoT sensors to anticipate maintenance requirements for industrial equipment. By predicting maintenance needs, manufacturers can minimize costly downtime and improve operational efficiency. Quality control is another vital area where industrial AIoT finds application. Real-time monitoring through sensors enables the detection of product defects, empowering operators to take immediate action, reducing waste, and improving overall product quality.

Additionally, industrial AIoT plays a crucial role in optimizing energy efficiency within manufacturing facilities. By analyzing data from sensors, AIoT devices can identify areas for improvement in energy consumption and optimize production processes accordingly. This leads to a reduction in energy wastage and lowers operational costs. Automation is a key aspect of industrial AIoT applications, allowing manufacturers to automate various processes, monitor production lines, schedule maintenance tasks, and optimize overall production operations. This integration of AIoT devices increases efficiency and productivity by streamlining workflows and optimizing resource utilization. Moreover, safety is a critical area where industrial AIoT excels. AIoT devices can identify potential hazards, monitor safety equipment, and provide real-time alerts to prevent accidents and injuries within the manufacturing environment, promoting a safer work environment for employees.

Smart retail

By leveraging artificial intelligence and the internet of things, AIoT devices are capable of analyzing customer data sourced from diverse channels, including smart home devices and mobile apps. This data offers valuable insights into customer behavior and preferences, which businesses utilize to provide personalized recommendations and customized services that result in increased customer satisfaction and loyalty. Additionally, it optimizes inventory management and reduces waste by using sensors to detect product levels and expiration dates, leading to efficient inventory management and cost savings for businesses. This approach also promotes a more sustainable retail model by reducing unnecessary waste.

Smart homes

AIoT technology is leveraged in smart homes to automate various processes such as temperature control, lighting, and security. By utilizing sensors, smart home systems detect changes in the environment and automatically change settings to optimize energy efficiency and create a more comfortable living space. This results in lower energy costs for homeowners while also promoting a more sustainable approach to home management. Additionally, automated security systems provide enhanced protection and peace of mind for homeowners.

Smart cars

In the field of transportation, AIoT leverages sensors such as cameras and lidar to analyze data in order to enhance safety and minimize accidents. This is particularly true for autonomous vehicles, which use this data to detect and respond to changes in the environment, such as the presence of other vehicles and pedestrians. By improving safety and reliability, it helps create a more efficient transportation system.

Smart healthcare

AIoT is utilized in healthcare to monitor patient health and create personalized treatment plans. Wearable devices collect vital signs and activity data that is analyzed by AI algorithms to detect patterns and provide insights into patient health. This enables doctors to make informed business decisions and offer targeted treatment options. Furthermore, it enhances the efficiency of healthcare systems by optimizing resource allocation and reducing wait times, ultimately improving patient care and outcomes.

Smart cities

Smart cities represent the next generation of urban development, and the incorporation of AIoT enhances their efficiency even further. For example, traffic signals equipped with sensors automatically adjust their timings based on the volume of traffic. Waste management systems leverage artificial intelligence to optimize resource allocation, reduce costs, and minimize waste. Furthermore, AIoT monitors and manages energy consumption across the city, promoting efficient energy use and reducing expenses for both residents and the city as a whole.

Wearable technology

Wearable technology has gained widespread popularity, and with the integration of AIoT, its potential is further enhanced. Devices like smartwatches and fitness trackers collect valuable data on an individual’s health, activity, and sleep patterns. This data is analyzed by artificial intelligence algorithms to create personalized workout routines and offer suggestions for improving overall health. In addition to health-related AIoT applications, wearable technology is also used for location tracking, emergency alerts, and secure authentication.

Are you ready for digital transformation?

The integration of artificial intelligence and the internet of things can have a significant impact on businesses, and those that do not adapt may be left behind. The use of AIoT applications can streamline operations, improve efficiency, and increase customer satisfaction. However, it is essential to have the right infrastructure and expertise to implement AIoT successfully.

The integration of artificial intelligence and the internet of things is changing how we live and work. AIoT has the potential to revolutionize industries and improve the quality of life for people worldwide. From smart homes to wearables, the applications of AIoT are vast and varied. As businesses and individuals continue to adopt and leverage AIoT applications, the benefits of this technology will become even more apparent. Whether you are a business owner or a consumer, it is crucial to stay informed about the latest developments in AIoT and be ready to adapt to the changing landscape of technology.

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FAQ

What are the applications of AIoT?

The applications of AIoT are numerous. It can be used in smart homes, healthcare, manufacturing, logistics, and transportation. AIoT can make devices and systems more intelligent and efficient, improve decision making, and reduce the need for human intervention.

What is an example of an AIoT?

An example of AIoT is a smart home security system that uses cameras and sensors to detect and alert homeowners about suspicious activity. The system may also use machine learning algorithms to learn homeowners’ behavior and detect anomalies in real time.

What are AIoT products?

AIoT products include a variety of devices and systems with embedded artificial intelligence and the internet of things technologies. These may include smart appliances, home automation systems, smart security systems, industrial sensors, and logistics and transportation systems.

What is the difference between IoT and AIoT?

IoT refers to devices that are connected to the internet and can communicate with each other, without necessarily having any intelligence or ability to learn on their own. AIoT, on the other hand, incorporates machine learning algorithms and artificial intelligence to make IoT devices and systems more intelligent and capable of independent decision-making.

Dmitry Nazarevich CTO

Date: Jun 14, 2023

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AI and IoT at the crossroads: the rise of AIoT and its impact on the future

How AI and IoT converge to change the way you do business

Advantages and benefits of AIoT applications in business